Towards unlocking the full potential of acquisitions: The role of organizational restructuring

Harry Barkema, MPG Schijven

Research output: Contribution to journalArticleAcademicpeer-review

213 Citations (Scopus)

Abstract

Building on behavioral theory, we study when and how firms unlock synergy from acquisitions over extended periods of time. We argue that initial integration is inevitably suboptimal and that, as a result, acquisitive growth decreases an acquirer's performance, eventually forcing it to engage in organizational restructuring to more fully unlock the synergistic potential. Hence, we conceptualize organizational restructuring as a second stage in the integration process. Moreover, we theorize about how acquisition-restructuring cycles evolve as firms gain acquisition and restructuring experience. We tested our theory using panel data on firms undertaking almost 1,600 acquisitions over four decades.
Original languageEnglish
Pages (from-to)696-722
Number of pages27
JournalAcademy of Management Journal
Volume51
Issue number4
DOIs
Publication statusPublished - 2008
Externally publishedYes

Fingerprint

Dive into the research topics of 'Towards unlocking the full potential of acquisitions: The role of organizational restructuring'. Together they form a unique fingerprint.

Cite this