Faculty of Economics and Business Administration Publications Database

Managing the acqusition program: Towards dynamic M&A program capabilities

zu Knyphausen-Aufseß, Dodo
Weber, Michael
ISSN-Print: 1615-6005
Link External Source: Online Version
Year: 2018
Keywords: Acquisition programs; Capability transfer; Deliberate learning; Dynamic capabilities; M&A capabilities; M&A process

Acquisition programs offer a unique setting for the development of dynamic M&A program capabilities. Building on the acquisition program, acquisition capability, and dynamic capability literature, we pursue deeper insights into dynamic M&A program capabilities and their effects on the development of acquisition capabilities. We consider M&A program capabilities to be “higher-order” (dynamic) capabilities, which shape the “zero-order” acquisition capabilities. We identify four important sub-processes (routines) in the overall M&A process namely: (1) target identification, (2) formal due diligence, (3) negotiation, and (4) post-acquisition integration. Our developed framework for M&A program capabilities constitutes of three elements: (a) managing for optimal experience accumulation, (b) managing the deliberate learning level, and (c) managing the transfer of M&A capabilities. Furthermore, given the challenges of managing the development and modification of acquisition capabilities within and across acquisition programs, we stress the need for the establishment of a dedicated M&A function.