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Resource and Skill Transfers in Subcontractor SME Acquisitions: Influence on the Long‐Term Performance of Acquired Firms
Author(s) -
FavreBonté Véronique,
ThévenardPuthod Catherine
Publication year - 2013
Publication title -
european management review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.784
H-Index - 32
eISSN - 1740-4762
pISSN - 1740-4754
DOI - 10.1111/emre.12014
Subject(s) - business , profitability index , industrial organization , resource (disambiguation) , resource based view , perspective (graphical) , term (time) , point (geometry) , marketing , knowledge management , competitive advantage , computer science , finance , computer network , physics , geometry , mathematics , quantum mechanics , artificial intelligence
This paper investigates the link between resource and skill transfers and the long‐term performance of acquisitions. Rather than taking the more common acquirer's perspective, this research emphasizes the point of view of the acquired firm and focuses on a little‐studied type of business, namely, small and medium‐sized subcontractor firms. Through 14 case studies of subcontractor acquisitions, we show that those acquired firms can improve their long‐term performance in terms of turnover, profitability, number of employees and reduced dependency, if they receive certain types of new resources and skills from acquirers. Particularly, post‐acquisition performance is more closely related to the transfer of managerial and functional skills than to operational resources. Three factors (e.g., geographical, business and cultural proximity) also help facilitate some types of transfers. However, the degree of post‐acquisition integration does not play a key role in those transfers.