Success and failure in M&As: Is there a place for a paradigm change? Evidence from the Israeli hi-tech industry

Authors

  • Ofer Zaks

DOI:

https://doi.org/10.18559/ebr.2016.1.6

Keywords:

mergers and acquisitions, performance measures, organizational performance, hi-tech industry

Abstract

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)

Downloads

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Published

2016-03-30

Issue

Section

Research article- regular issue

How to Cite

Zaks, O. (2016). Success and failure in M&As: Is there a place for a paradigm change? Evidence from the Israeli hi-tech industry. Economics and Business Review, 2(1), 85-106. https://doi.org/10.18559/ebr.2016.1.6

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