Bauer, Florian and Strobl, Andreas and Dao, Mai Anh and Matzler, Kurt and Rudolf, Nicole (2018) Examining Links between Pre and Post M & A Value Creation Mechanisms d Exploitation, Exploration and Ambidexterity in Central European SMEs. Long Range Planning, 51 (2). pp. 185-203. ISSN 0024-6301
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Abstract
Value creation in acquisitions is a complex topic with divergent theoretical roots and mixed empirical evidence. In empirical research, the study of strategic fi t between an acquirer and target as an important indicator of synergy often yields ambiguous fi ndings, for two major reasons: the conceptualization of the fi t construct and that construct ’ s missing link with issues of post-merger integration. In this paper, we apply exploration and exploitation as different concepts of learning to conceptualize the strategic fi t among organizations involved. We do not draw a direct relationship regarding M & A performance, but instead treat the success of post-acquisition exploration and exploitation as a mediator in the fi t-performance relationship. With a sample of 101 acquisitions of small and medium-sized fi rms from the German-speaking part of Europe, we fi nd evidence for our proposed hypotheses. First, fi t regarding these two learning modes im- proves performance; second, a synergistic effect exists between exploration and exploitation; third, ambidextrous post-merger devel- opment in exploration and exploitation negatively affects M & A performance; and fourth, acquisition experience bene fi ts the transfer of pre-merger strategic fi t to the success of post-merger activity. Based on those fi ndings, we derive implications for theory and practice.