Abstract
We consider a knowledge flow that dominates the international acquisition context but can actually harm foreign acquired firms' performance: non-location-specific knowledge transfer from acquirers to acquired firms ( N-LSKT). Considering its behavioral consequences, we argue that such knowledge transfer often may destabilize existing power structures in foreign acquired firms prompting conflict and power struggles, and as a result negatively affects their performance. We find support for this adverse knowledge transfer effect. Only at very high levels of N-LSKT, when acquirers are likely to extend their own capabilities and associated power structures more completely, do the performance effects improve. Further, predeal success of acquirers and post-deal functional integration amplify, while acquirers' strategic control over the acquired firm alleviates the generally negative effects of N-LSKT.
Original language | English |
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Pages (from-to) | 932-944 |
Number of pages | 13 |
Journal | Strategic Management Journal |
Volume | 37 |
Issue number | 5 |
DOIs | |
Publication status | Published - 2016 |
Research programs
- RSM S&E