Success and failure in M&As: Is there a place for a paradigm change? Evidence from the Israeli hi-tech industry
DOI:
https://doi.org/10.18559/ebr.2016.1.6Keywords:
mergers and acquisitions, performance measures, organizational performance, hi-tech industryAbstract
The consistent growth of mergers and acquisitions (M&As) activity around the world in the last decade, and the volume of capital involved in such transactions, stand in sharp contrast to the high failure rates evident in M&As. The inconsistency amongst empirical findings on M&A performance is based on a variety of settings and on different measurements investigated under the generic label M&As. This paper claims that we need to differentiate between general M&As and those involving technology firms acquisition. The combination of the drive, the dynamic process and the human capital capabilities which characterize the latter, is expected to result in a more successful result than was reported. Hi-tech innovative acquirers can benefit from buying small, start- up firms by adding valuable resources, increasing market power and initiating strategic renewal.
JEL Classification
General Economics (A1)
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Copyright (c) 2016 Poznań University of Economics and Business

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