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AOM PDW on the intersection of alliances and acquisitions
This professional development workshop aims to foster research at the intersection of strategic alliances and M&A. While there is substantial research on each, relatively few studies have explored how these two important modes of corporate development are related. While some studies have investigated the influence of an alliance on the likelihood one partner acquires another and how this can influence post-acquisition performance, very little research has examined other important questions, such as: how does a firm's acquisition influence its alliance activity and alliance network structure? How does a firm's alliance experience influence it's likelihood of acquisition and acquisition performance? How do managers choose between these two alternative modes of corporate development? In this PDW, we will examine these questions and others. This workshop aims to gather scholars at all career stages from a variety of scholarly domains and AOM divisions that share a common interest in alliances or acquisitions. The workshop will open with five presentations by experienced scholars who are conducting research at the intersection of alliances and acquisitions. A brief description of each presentation is provided below. This portion of the PDW is open to everyone without prior registration. It will be followed by group discussions led by the PDW faculty to foster research on the topic. To participate in the latter portion of the PDW you will need to pre-register. You can do so here:
http://bit.ly/2pnqLQE
To see the listing of this PDW in the AOM online program, visit:
http://my.aom.org/program2017/SessionDetails.aspx?sid=13578
Here is an overview of the presentations:
Dovev Lavie (Technion):
In my presentation I intend to discuss what we know and what we don't know about the interplay of alliances and acquisitions. I plan to discuss the state of the literature on three relevant themes: (1) the choice between alliances and acquisitions, (2) the effect of alliance experience on M&A activity and performance, and (3) the influence of M&As on alliances. For each of these themes I will also identify interesting directions for future research that can contribute to advancement of this literature.
Exequiel Hernandez (Wharton):
Acquisitions modify the structure of alliance networks by causing two nodes (acquirer and target) to "collapse" and allowing the acquirer to inherit all of the target's alliances in a single transaction. I will present studies showing three implications of this insight. (1) Firms can gain network synergies through acquisitions. (2) The evolution of the alliance network depends on whether firms pursue internal vs. network synergies. (3) Acquisitions are a more effective path than forming or ending alliances (and sometimes the only path) to modify the alliance network in their favor.
Linda Rademaker (BI Norwegian Business School):
While emerging market firms have been actively using foreign acquisitions as a way to access (technological) knowledge, little is known about domestic alternatives to technology-seeking foreign direct investment. In my presentation, I will discuss the influence of domestic alliances with foreign multinational enterprises on foreign acquisition decisions. In particular, I will examine the relation between a firm's alliance experience, its own technological capabilities, and foreign acquisitions. I highlight the necessity of understanding the content of learning in domestic alliances in order to better understand drivers of knowledge-seeking acquisitions and will discuss directions for future research.
Aneta Oleksiak (U. of Groningen):
Existing alliance studies are inclined to limit their attention to original alliances and point to the initial design of alliances as a key determinant of long-term value creation. However, alliances are not always self-initiated and self-designed. Instead, they may also be inherited by firms upon pursued acquisitions. In the first part of my presentation, I will reflect on the interviews I have conducted with senior-level alliance executives from biotech sector and discuss the differences between self-initiated and acquired alliances and the implications of these differences. In the second part of my presentation, I will give a short overview of what kind of data approach we need to research alliances in the context of acquisitions.
Panos Desyllas (U. of Bath):
We are presenting findings from new research exploring the question of whether acquirers benefit from resources embedded in target firm alliance relationships. We propose that investors tend to be concerned with acquirers' capacity to create and capture value from acquired relational resources due to factors inhibiting their effective redeployment. We investigate empirically this issue using an event study and a sample of 1,085 technology acquisitions in the USA.
*** THE INTERACTIONS BETWEEN ALLIANCES AND ACQUISITIONS ***
This professional development workshop aims to foster research that combines interorganizational alliances and firm acquisitions. While there are vast bodies of literature on each of these two topics, there is rather limited research that combines and integrates insights from both streams of research. But firms' alliance and acquisition strategies are strongly intertwined as alternative modes of corporate development. Furthermore, despite differences in the degree of organizational interdependence between partners, the two corporate development modes share several empirical and theoretical linkages. Therefore, we ask the questions of how alliances affect various aspects of a firm's acquisition strategy and how acquisitions influence a firm's alliance behavior. This workshop aims to gather scholars at various stages of their career from the domains of organizational theory, strategy or innovation perspective (e.g. BPS, OT, TIM) that share a common interest in alliances or acquisitions. The workshop will open with four presentations by experienced scholars on the interaction between alliances and acquisitions, which is open to everyone, and is followed by group discussions go foster research on this topic, which is open to registered participants. The goal of this PDW is to introduce this research topic to a larger audience and stimulate future research in this area.
Program link: http://my.aom.org/program2017/SessionDetails.aspx?sid=13578
Here is an overview of the presentations of the five speakers:
Dovev Lavie (Technion):
In my presentation I intend to discuss what we know and what we don't know about the interplay of alliances and acquisitions. I plan to discuss the state of the literature on three relevant themes: (1) the choice between alliances and acquisitions, (2) the effect of alliance experience on M&A activity and performance, and (3) the influence of M&As on alliances? For each of these themes I will also identify interesting directions for future research that can contribute to advancement of this literature.
Exequiel Hernandez (Wharton):
Acquisitions modify the structure of alliance networks by causing two nodes (acquirer and target) to "collapse" and allowing the acquirer to inherit all of the target's alliances in a single transaction. I will present studies showing three implications of this insight. (1) Firms can gain network synergies through acquisitions. (2) The evolution of the alliance network depends on whether firms pursue internal vs. network synergies. (3) Acquisitions are a more effective path than forming or ending alliances (and sometimes the only path) to modify the alliance network in their favor.
Linda Rademaker (BI Norwegian Business School):
While emerging market firms have been actively using foreign acquisitions as a way to access (technological) knowledge, little is known about domestic alternatives to technology-seeking foreign direct investment. In my presentation, I will discuss the influence of domestic alliances with foreign multinational enterprises on foreign acquisition decisions. In particular, I will examine the relation between a firm's alliance experience, its own technological capabilities, and foreign acquisitions. I highlight the necessity of understanding the content of learning in domestic alliances in order to better understand drivers of knowledge-seeking acquisitions and will discuss directions for future research.
Aneta Oleksiak (U. of Groningen):
Existing alliance studies are inclined to limit their attention to original alliances and point to the initial design of alliances as a key determinant of long-term value creation. However, alliances are not always self-initiated and self-designed. Instead, they may also be inherited by firms upon pursued acquisitions. In the first part of my presentation, I will reflect on the interviews I have conducted with senior-level alliance executives from biotech sector and discuss the differences between self-initiated and acquired alliances and the implications of these differences. In the second part of my presentation, I will give a short overview of what kind of data approach we need to research alliances in the context of acquisitions.
Panos Desyllas (U. of Bath):
We are presenting findings from new research exploring the question of whether acquirers benefit from resources embedded in target firm alliance relationships. We propose that investors tend to be concerned with acquirers' capacity to create and capture value from acquired relational resources due to factors inhibiting their effective redeployment. We investigate empirically this issue using an event study and a sample of 1,085 technology acquisitions in the USA.
We hope to see you in Atlanta!
Corey Phelps (co-organizer)
Panos Desyllas (co-organizer)
Martin Goossen (co-organizer)
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