Innovation as Determining Factor of Post-M&A Performance: The Case of Vietnam

International Journal of Business and Management, Vol. 8, No. 18, pp. 25-31, 2013.

7 Pages Posted: 21 Aug 2013

See all articles by Quan Hoang Vuong

Quan Hoang Vuong

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management; Phenikaa University

Nancy K. Napier

Boise State University - College of Business & Economics

Donaldine Samson

Stamford International University

Date Written: August 20, 2013

Abstract

This research aims to communicate new results of empirical investigations to learn about the relationship between determination of controlling an acquired firm’s capital, assets and brand versus its capability of innovation and ex post performance of Vietnam’s M&A industry in the 2005-2012 period. The analysis employs a categorical data sample, consisting of 212 M&A cases, and performs a number of logistic regressions with significant results being reported on relationships between pre-M&A strategic pursuit of innovation (versus capital/physical assets) of the acquired and post-M&A performance. In addition, pre-M&A capital expenditures tend to cause poor post-M&A performance. As a general conclusion, this study shows that creative performance can be a factor to pursue in M&A transactions, which suggests the need to emphasize capable and willing human capital. However, in a wave of M&A where there is an overwhelming emphasis on assets and brands, the innovation factor’s impact is limited.

Keywords: mergers and acquisitions, innovation, creativity, firm performance, economic transition, human capital, financial markets

JEL Classification: L25, O10, O30, P31, P34

Suggested Citation

Vuong, Quan Hoang and Napier, Nancy K. and Samson, Donaldine, Innovation as Determining Factor of Post-M&A Performance: The Case of Vietnam (August 20, 2013). International Journal of Business and Management, Vol. 8, No. 18, pp. 25-31, 2013. , Available at SSRN: https://ssrn.com/abstract=2313056

Quan Hoang Vuong (Contact Author)

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management ( email )

ULB CP 145/01
21 Ave. F.D. Roosevelt
Brussels, Bruxelles 1050
Belgium
+32-2-6504864 (Phone)
+32-2-6504188 (Fax)

HOME PAGE: http://www.ceb-ulb.com/vuong-quan-hoang.html

Phenikaa University ( email )

To Huu road, Yen Nghia
Ha Dong district
Hanoi, Hanoi 100803
Vietnam

HOME PAGE: http://sites.google.com/site/vuongqh2019/

Nancy K. Napier

Boise State University - College of Business & Economics ( email )

1910 University Drive
Boise, ID 83725
United States
208 426-1314 (Phone)
208 426-3637 (Fax)

HOME PAGE: http://cobe.boisestate.edu/graduate/faculty/VITAES/html%20format/Nancy%20Napier.htm

Donaldine Samson

Stamford International University ( email )

16, Motorway Road - Km2
Prawet
Bangkok, Phetchaburi 10250
Thailand

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
123
Abstract Views
1,102
rank
257,076
PlumX Metrics