Momentum and serendipity: how acquired leaders create value in the integration of technology firms
Article first published online: 20 JUL 2004
Copyright © 2004 John Wiley & Sons, Ltd.
Strategic Management Journal
Special Issue: The Global Acquisition, Leverage, and Protection of Technological Competencies
Volume 25, Issue 8-9, pages 751–777, August - September 2004
How to Cite
Graebner, M. E. (2004), Momentum and serendipity: how acquired leaders create value in the integration of technology firms. Strat. Mgmt. J., 25: 751–777. doi: 10.1002/smj.419
- Issue published online: 20 JUL 2004
- Article first published online: 20 JUL 2004
- mergers and acquisitions;
- exploration and exploitation;
- organizational change;
- top management teams
Merger and acquisition activity is a critical means by which technology firms obtain the resources needed to compete in global markets. Effective implementation is essential to making these acquisitions successful, yet prior research on the implementation process has yielded paradoxical findings. I argue that a closer examination of the role of the acquired managers helps to resolve the implementation dilemmas found in prior research, which has focused on the role of the acquiring firm. I use grounded theory-building techniques to examine the integration of eight technology acquisitions, and find that acquired managers play a key role in achieving two types of value: expected and serendipitous. In promoting the realization of these two types of value, acquired leaders maintain the advantages of both integration and autonomy. Moreover, these leaders enable their organizations to simultaneously experience two often-conflicting forms of change: exploration and exploitation. Copyright © 2004 John Wiley & Sons, Ltd.