Naslov
Corporate Entrepreneurship: Growth through acquisitions with a focus on target firm TMT retention

Autori
Kiessling, Timothy ; Dabić, Marina

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Regional Frontiers of Entrepreneurship Research / Langan-Fox, J . - Melbourne : Swinburne University of Technology, 2010, 47-54

ISBN
978-0-9803328-6-5

Skup
7th ASGE International Entrepreneurship Research Exchange 2010

Mjesto i datum
Melbourne, Australija, 02.02.2010. - 05.02.2010

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
corporate; entrepreneurship; acquisitions; target firm

Sažetak
From the market for corporate control (MCC) perspective, the key role of takeovers is to correct the effects of managers’ past behavior that has caused the firm to under-perform (Jensen, 1986). Such corrections occur when alternative management teams compete successfully for the right to control the assets of undervalued corporations (Jensen and Ruback, 1983). This literature further suggests that getting rid of the previous management should improve the performance of the acquired firm. While the MCC perspective explains why failing firms are acquired, it does not explain why successful firms become targets. Another body of literature suggests that if firms are performing well, acquisitions occur because the target firm represents an opportunity for the acquiring firm (Trautwein, 1990 ; Lepak and Snell, 1999). Specifically, such high performing targets may be resources of which the acquirer wishes to take advantage. We examine the argument that inherent in the “target firm as resource” perspective is the idea that the TMT and its skills or expertise may be the valuable, rare and inimitable elements that make the organization an attractive target. We adopt this perspective in part because of past research that suggests that there may a negative relationship between TMT turnover and postacquisition performance (e. g. Martin and McConnell 1991). The key question driving the present paper is: what is the effect of the target firm’s TMT’s characteristics and retention (TMT) on the performance of the target firm subsequent to acquisition?

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA