Mergers and Acquisitions Strategies for Industry Leaders, Challengers, and Niche Players: Interaction Effects of Technology Positioning and Industrial Environment

This study empirically investigates the merger and acquisition (M&A) strategies of focal firms by considering their market and technology position at the industry level. The results obtained using patents, firm M&A agreements, and the financial data of U.S. technology firms from 1997 through...

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Bibliographic Details
Published in:IEEE transactions on engineering management Vol. 62; no. 1; pp. 80 - 88
Main Authors: Lin, Bou-Wen, Chen, Wan-Chen, Chu, Po-Young
Format: Journal Article
Language:English
Published: New York IEEE 01.02.2015
The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subjects:
Acquisitions & mergers
Companies
Corporate acquisitions
Industries
Industry challenger
industry environment
industry leader
Management theory
market position
Market positioning
mergers and acquisitions (M&As)
Niche marketing
niche player
Strategic management
Studies
Technological innovation
technological positioning
Technology adoption
United States > US
industry environment
Industry challenger
mergers and acquisitions (M&As)
market position
industry leader
niche player
technological positioning
ISSN:0018-9391, 1558-0040
Online Access:Get full text
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Summary:This study empirically investigates the merger and acquisition (M&A) strategies of focal firms by considering their market and technology position at the industry level. The results obtained using patents, firm M&A agreements, and the financial data of U.S. technology firms from 1997 through 2008 demonstrate how industry leaders, challengers, and niche players differ in their M&A strategic logic. Three industry environmental factors and two technology positioning factors exhibit different effects on firms' M&A strategies for varied market positions. The overall patterns reveal that niche players are more aggressive in leveraging their technology positions to adopt M&As for the purpose of acquiring access to external knowledge resources, while leaders tend to leverage their market positions and use M&As to further strengthen their market power. Challengers are more likely to engage in M&As when locating in unfavorable environmental markets, but they are less likely to engage in M&As when locating in technologically crowded areas.
Bibliography:SourceType-Scholarly Journals-1
ObjectType-Feature-1
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ISSN:0018-9391
1558-0040
DOI:10.1109/TEM.2014.2380822