Dynamics of External Growth in SMEs: A Process Model of Acquisition Capabilities Emergence

Schmalenbach Business Review, Vol. 59, July 2007

25 Pages Posted: 7 Aug 2007 Last revised: 4 Dec 2008

See all articles by Carlo Salvato

Carlo Salvato

Bocconi University - Department of Management and Technology

Ugo Lassin

University of Bocconi - Strategic and Entrepreneurial Management Department

Johan Wiklund

Syracuse University

Abstract

Acquisition growth is not a common theme in entrepreneurship research. Entrepreneurial growth has traditionally been addressed as organic growth, i.e. as internal expansion through the extension of existing operations and internally induced process and product innovations. We contend that acquisition growth may generate entrepreneurial benefits over the long run, which may not be present in organic growth or green-field establishments. In fact, acquisition can be a way to release entrepreneurial activities in a firm. Acquisitions may revitalize a firm and improve its ability to anticipate or to react adequately to changing external conditions. We contend that these positive outcomes will only accrue to acquiring organizations when acquisition growth is coupled with the development of acquisition capabilities, i.e., with the accumulation, storage, and exploitation of fresh organizational knowledge.

Keywords: Absorptive Capacity, Capabilities, Comparative Case Studies, External Growth, Mergers and Acquisitions, Process Model, SMEs, Venture Capital

JEL Classification: G34, M13, O31

Suggested Citation

Salvato, Carlo and Lassin, Ugo and Wiklund, Johan, Dynamics of External Growth in SMEs: A Process Model of Acquisition Capabilities Emergence. Schmalenbach Business Review, Vol. 59, July 2007, Available at SSRN: https://ssrn.com/abstract=1005133

Carlo Salvato (Contact Author)

Bocconi University - Department of Management and Technology ( email )

Via Roentgen 1
Milan, MI 20136
Italy

Ugo Lassin

University of Bocconi - Strategic and Entrepreneurial Management Department ( email )

Via Sarfatti, 25
Milan, MI 20136
Italy
+39 02 58362520 (Phone)
+39 02 58362530 (Fax)

HOME PAGE: http://www.familybusinessonline.org/programs/ferc/pdf/roundtable2/05-16.pdf

Johan Wiklund

Syracuse University ( email )

Whitman School of Management
720 University Avenue
Syracuse, NY 13244-2130
United States

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