A Capabilities-Based Perspective on Target Selection in Acquisitions
dc.contributor.author | Wu, Xun (Brian) | |
dc.contributor | Kaul, Aseem | |
dc.date.accessioned | 2015-04-02T13:29:53Z | |
dc.date.available | 2015-04-02T13:29:53Z | |
dc.date.issued | 2015-03 | |
dc.identifier | 1270 | en_US |
dc.identifier.citation | Strategic Management Journal, Forthcoming | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/110810 | |
dc.description.abstract | We develop a capabilities-based theory of acquirer target selection, arguing that acquirers will pursue both low capability targets in existing contexts to deploy existing capabilities, and high capability targets in new contexts to acquire new capabilities. These arguments are formalized in an analytical model that jointly considers the benefits and costs of acquisition as a function of target capability level and context. The predictions from this model are tested in the Chinese Brewing industry (1998-2007), with results showing that acquirers strongly prefer inferior targets in existing geographic markets, but are relatively more likely to choose superior targets in new markets, especially if they have strong acquisition capabilities. Our study provides insight into the factors driving target selection, and contributes to a capabilities-based understanding of acquisitions. | en_US |
dc.subject | Acquisitions | en_US |
dc.subject | Organizational Capabilities | en_US |
dc.subject | Acquisition Capabilities | en_US |
dc.subject | Geographic Diversification | en_US |
dc.subject | Target Choice | en_US |
dc.subject.classification | Strategy | en_US |
dc.title | A Capabilities-Based Perspective on Target Selection in Acquisitions | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbsecondlevel | Business (General) | en_US |
dc.subject.hlbtoplevel | Business | |
dc.contributor.affiliationum | Ross School of Business | en_US |
dc.contributor.affiliationother | Carlson School of Management, University of Minnesota | en_US |
dc.contributor.affiliationumcampus | Ann Arbor | |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/110810/1/1270_Wu.pdf | |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/110810/4/1270_Wu_March2015.pdf | |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/110810/6/1270_March2015_2.pdf | |
dc.description.filedescription | Description of 1270_Wu_March2015.pdf : March 2015 Revision | |
dc.description.filedescription | Description of 1270_March2015_2.pdf : March 2015 + | |
dc.owningcollname | Business, Stephen M. Ross School of - Working Papers Series |
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