Network Imitation to Deal with Sociocultural Dilemmas in Acquisitions of Young, Innovative Firms
Article first published online: 19 JUN 2013
© 2013 Wiley Periodicals, Inc.
Thunderbird International Business Review
Volume 55, Issue 4, pages 387–403, July/August 2013
How to Cite
Öberg, C. (2013), Network Imitation to Deal with Sociocultural Dilemmas in Acquisitions of Young, Innovative Firms. Thunderbird Int'l Bus Rev, 55: 387–403. doi: 10.1002/tie.21552
- Issue published online: 19 JUN 2013
- Article first published online: 19 JUN 2013
This article expands current acquisition literature to include sociocultural challenges on inter-organizational levels following acquisitions of young, innovative firms. Socioculture here denotes network parties' shared values, belief systems, and practices. Three acquisitions illustrate their consequences. The young, innovative firms and their acquirers are part of different networks, have dissimilar motives for pursuing business, and work within different time frames. To potentially improve knowledge transfer and integration, the acquirer can learn from the innovative firm's network interactions; choose targets among its own network parties; organize its governance into a separate business unit; practice reverse value integration from the acquired party; and carefully promote practices that foster innovativeness. The article contributes to research on acquisitions of young, innovative firms through pointing to how values and practices are interlinked in networks, and how the imitation of the acquired party's network interaction may help to sustain its innovativeness and transfer knowledge between the acquirer and acquired party. © 2013 Wiley Periodicals, Inc.