Integrating Acquired Capabilities: When Structural Integration is (Un)Necessary

Organization Science, Forthcoming

43 Pages Posted: 9 Jun 2005  

Phanish Puranam

INSEAD

Harbir Singh

University of Pennsylvania - Management Department

Saikat Chaudhuri

University of Pennsylvania - Management Department

Abstract

Acquirers who buy small technology based firms for their technological capabilities often discover that post merger integration can destroy the very innovative capabilities that made the acquired organization attractive in the first place. Viewing structural integration as a mechanism to achieve coordination between acquirer and target organizations helps explain why structural integration may be necessary in technology acquisitions despite the costs of disruption this imposes, as well as the conditions under which it becomes less (or un-) necessary. We show that interdependence motivates structural integration, but pre-existing common ground offers acquirers an alternate path to achieving coordination, which may be less disruptive than structural integration.

Keywords: Coordination, Acquisitions, Organization Design

JEL Classification: L22, D23, L23

Suggested Citation

Puranam, Phanish and Singh, Harbir and Chaudhuri, Saikat, Integrating Acquired Capabilities: When Structural Integration is (Un)Necessary. Organization Science, Forthcoming. Available at SSRN: https://ssrn.com/abstract=740487 or http://dx.doi.org/10.2139/ssrn.740487

Phanish Puranam (Contact Author)

INSEAD ( email )

1 Ayer Rajah Avenue
Singapore, 138676
Singapore

HOME PAGE: http://www.insead.edu/facultyresearch/faculty/profiles/ppuranam/

Harbir Singh

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States
215-898 6752. (Phone)
215-898 0401 (Fax)

Saikat Chaudhuri

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States

HOME PAGE: http://www.wharton.upenn.edu/faculty/chaudhuri.html

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