Knowing when to acquire: The case of multinational technology firms

Nir N. Brueller*, Shmuel Ellis, Eli Segev, Abraham Carmeli

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

13 Scopus citations

Abstract

This study examines the effects of timing in high-tech acquisitions by analyzing how deviation from routines affects the value captured by the acquirer as well as the price paid. It examines the context of information and communication technology (ICT) acquisitions in which multinational technology incumbents are known to habitually acquire product-related capabilities to facilitate their entry into new product domains. The paper highlights the role of routines in managing technology acquisitions of multinationals, and tests the hypothesis that smaller deviations in terms of target-maturity and acquisition-timing lead to superior outcomes for acquirers. The findings indicate positive relationships between stricter iterations of routines and superior outcomes. The discussion centers on the theoretical implications of acquisition routines, timing and performance of multinational technology companies.

Original languageEnglish
Pages (from-to)1-10
Number of pages10
JournalInternational Business Review
Volume24
Issue number1
DOIs
StatePublished - 2015

Funding

FundersFunder number
Henry Crown Institute of Business Research in Israel
Hurvitz Institute of Strategic Management
Samuel Neaman Institute for Advanced Studies in Science and Technology
Tel Aviv University
Technion-Israel Institute of Technology

    Keywords

    • Acquisition routines
    • Multinational companies
    • Organizational routines
    • Price
    • Target maturity
    • Timing and performance

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