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Can a Previous Alliance Between an Acquirer and a Target Affect Acquisition Performance?

Patrizia Porrini

Department of Management, C.W. Post Campus Long Island University, 720 Northern Boulevard, Brookville, NY 11548, USA

Throughout the 1990s, organizations have been combining resources through acquisitions and alliances in record numbers. An acquirer’s previous alliance with a target may give an acquirer target-specific information and experience that may be an advantage-producing resource in selection, valuation and integration of the target. This study investigates whether a previous alliance between an acquirer and a target affects post-acquisition performance and finds that a previous alliance between an acquirer and a target correlates positively with acquisition performance. Acquirers’ previous R&D, technology transfer, manufacturing and marketing alliances with targets benefit acquisition performance more than their previous licensing alliances with targets. Furthermore, target-specific learning effects are strongest and most beneficial to acquisition performance in acquirers’ previous technology transfer and manufacturing alliances with targets.

DOI

10.1016/j.jm.2004.02.003

Volume

30 (4)

Pages

545-562

Language

en

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BibTeX

Sources

crossref