A contextual theory of organizational learning from failures and successes: A study of acquisition completion in the global newspaper industry, 1981–2008

Muehlfeld, Katrin; Sahib, Padma Rao; Witteloostuijn, A. van

doi:10.1002/smj.1954

Cited by 228 publications

(141 citation statements)

References 76 publications

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“…The results are mixed (King et al ., ), ranging from uniformly positive (Barkema et al ., ; Fowler and Schmidt, ), U‐shaped (Haleblian and Finkelstein, ), inverted U‐shaped (Hayward, ), to negative (Kusewitt, ; Uhlenbruck et al ., ), or not significant (Zollo and Singh, ). Muehlfeld, Rao Sahib, and Van Witteloostuijn () find that learning from acquisition failures and success is highly context‐specific and outcome‐dependent. In their comprehensive literature review, Haleblian et al .…”

Section: Discussionmentioning

confidence: 99%

Antecedents of M&A success: The role of strategic complementarity, cultural fit, and degree and speed of integration

2013

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In this paper, we develop a comprehensive model of M&A success. We integrate fundamental constructs of different schools and discuss their interdependencies with M&A success. Our theoretical framework was tested empirically across a sample of 106 SME transactions in the machinery, electronic, and logistic industries in the German‐speaking part of Central Europe. The results of our study support the demand for an integrative perspective and theory on M&A. M&A success is a function of strategic complementarity, cultural fit, and the degree of integration. Strategic complementarity also positively influences cultural fit and the degree of integration. Cultural fit positively influences M&A success, but surprisingly has a negative impact on the speed and degree of integration. The degree of integration is positively related to speed of integration. Copyright © 2013 John Wiley & Sons, Ltd.

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Section: Discussionmentioning

confidence: 99%

Antecedents of M&A success: The role of strategic complementarity, cultural fit, and degree and speed of integration

2013

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“…We identified 492 CBAs that were not completed from 2008 to 2014 by foreign acquirers in the African countries included in our final sample used for hypotheses testing. We then collected data from SDC for these deals and those in our sample to measure five factors known to influence deal completion/abandonment (Dikova et al, 2010;Muehlfeld, Rao Sahib, & van Witteloostuijn, 2012). These variables-the public status of the target firm, whether the target firm was a subsidiary unit, the public status of the acquiring firm, whether the acquiring firm used cash as the form of payment, and if the focal deal represented a divestiture-were all coded 1 when the respective condition was met and 0 otherwise.…”

Section: Control Variablesmentioning

confidence: 99%

Institutional determinants of ownership positions of foreign acquirers in Africa

Ellis

Lamont

Holmes

et al. 2017

Global Strategy Journal

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Research summary Using unique features of the African context and blending institutional, hostage, and transaction cost theories, we address gaps in our understanding of institutional determinants of ownership position in cross‐border acquisitions (CBAs) in emerging countries. We focus on two traditional institutional determinants: Informal and formal institutional distances between the two firms’ home countries and two determinants that are particularly acute in the African context: the colonial ties between and fractionalization of the two firms’ home countries. We find colonial ties and uncertainty avoidance distance, an indicator of informal institutional distance, are negatively related to ownership position. Conversely, we show that formal institutional distance and the host country's fractionalization positively influence ownership levels, but the latter effect is weakened when acquirers come from more fractionalized home countries. Managerial summary We examine the effects of four institutional factors that influence organizational decision‐making in the African context: (a) its colonial history, (b) differences in informal cultural norms, (c) differences in formal regulatory structures, and (d) ethnic and linguistic diversity within a country on the percentage of equity ownership that foreign acquirers hold in African target firms. Results indicate that this equity position is lower when colonial ties and greater differences in uncertainty avoidance exist between the acquirer's home country and the target African country. Conversely, foreign acquirers’ equity ownership positions are higher when there are greater formal regulatory differences between the two countries and the host country is more ethnically and linguistically diverse, though the latter effect is reduced when the acquirer is from a home country that is also diverse.

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“…Third, this study adds to the literature on acquisition outcome (Dikova et al, 2010). Prior studies have shown that deal outcome, that is, deal completion or abandonment, is affected by various factors such as state ownership (Li et al, 2019;Li, Xia, & Lin, 2017), capital market development, affiliation with business group (Kim & Song, 2017), geographic distance (Chakrabarti & Mitchell, 2016), and organization learning (Muehlfeld, Rao Sahib, & Van Witteloostuijn, 2012). To the best of my knowledge, this is the first study to link board size with the likelihood of deal abandonment.…”

Section: Introductionmentioning

confidence: 85%

“…Following prior studies, I employed logistic regression analysis because the dependent variable was categorical in nature (Dikova et al, 2010;Fuad & Gaur, 2019;Kim & Song, 2017;Li et al, 2019;Muehlfeld et al, 2012…”

Section: Empirical Modelmentioning

confidence: 99%

Board size and acquisition outcome: The moderating role of home country formal institutional development

Waqar

2020

Manage Decis Econ

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The effect of acquirer's board size on the outcome of an acquisition (i.e., whether an announced deal gets abandoned or completed) was examined on the basis of a sample of 775 cross-border acquisitions. The study took into consideration the moderating effect of formal institutional development of the home country. Results showed that board size was negatively associated with the likelihood of deal abandonment and that this relationship was weaker for home countries where formal institutional development was high. The study contributes to the literature on group decision-making theory, institutional view of corporate governance, and acquisition outcome.

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A contextual theory of organizational learning from failures and successes: A study of acquisition completion in the global newspaper industry, 1981–2008

Cited by 228 publications

References 76 publications

Antecedents of M&A success: The role of strategic complementarity, cultural fit, and degree and speed of integration

Antecedents of M&A success: The role of strategic complementarity, cultural fit, and degree and speed of integration

Institutional determinants of ownership positions of foreign acquirers in Africa

Board size and acquisition outcome: The moderating role of home country formal institutional development

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