Rhythm and Entrainment of Acquisition and Alliance Initiatives and Firm Performance: A Temporal Perspective

Organization Studies, Vol. 33, No. 10, October 2012

Posted: 18 Aug 2013

See all articles by Weilei (Stone) Shi

Weilei (Stone) Shi

City University of New York - Narendra Paul Loomba Department of Management

John E. Prescott

University of Pittsburgh - Strategy, Environment, and Organizations Group

Date Written: August 16, 2012

Abstract

A temporal perspective, focusing on when and under what conditions firms should accelerate or slow-down their acquisition and alliance initiatives, is gaining momentum in strategy research. We explore the temporal relationships between rhythm, entrainment and firm performance. Firms that temporally structure the rhythm of repetitive acquisitions in an even-event pace achieve superior performance as compared to an even or event pace. We also find that intraentrainment – the internal synchronization between acquisition and alliance initiatives – enhances performance and the extraentrainment of alliances – the synchronization with competitors’ alliance rhythm – enhances performance. Our findings have important implications for the organizational improvisation, dynamic fit and alliance/acquisition experience literatures which further opens the window to understanding the creation of competitive advantage by managing rhythm-type strategic actions over time.

Keywords: Rhythm, Synchronization, Entrainment, Temporal, Acquisition, Alliance

Suggested Citation

Shi, Weilei (Stone) and Prescott, John E., Rhythm and Entrainment of Acquisition and Alliance Initiatives and Firm Performance: A Temporal Perspective (August 16, 2012). Organization Studies, Vol. 33, No. 10, October 2012. Available at SSRN: https://ssrn.com/abstract=2311415

Weilei (Stone) Shi (Contact Author)

City University of New York - Narendra Paul Loomba Department of Management ( email )

NY
United States

John E. Prescott

University of Pittsburgh - Strategy, Environment, and Organizations Group ( email )

United States

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