Reducing causal ambiguity in acquisition integration: Intermediate goals as mediators of integration decisions and acquisition performance

Margaret Cording; Petra Christmann; David R. King

doi:https://doi.org/10.5465/AMJ.2008.33665279

Reducing causal ambiguity in acquisition integration: Intermediate goals as mediators of integration decisions and acquisition performance

Margaret Cording, Petra Christmann, David R. King

Rutgers, The State University

Research output: Contribution to journal › Article › peer-review

222 Scopus citations

Abstract

Integration is a difficult process, but one that is vital to acquisition performance. One reason acquirers encounter difficulties is that the integration process exhibits high levels of intrafirm linkage ambiguity - a lack of clarity in the causal link between integration decisions and their performance outcomes. We introduce the construct of intermediate goals as a mechanism that reduces intrafirm linkage ambiguity. Our structural model results, based on a sample of 129 horizontal acquisitions, indicate that the achievement of two intermediate goals (internal reorganization and market expansion) fully mediates the relationships between four integration decisions and acquisition performance.

Original language	English (US)
Pages (from-to)	744-767
Number of pages	24
Journal	Academy of Management Journal
Volume	51
Issue number	4
DOIs	https://doi.org/10.5465/AMJ.2008.33665279
State	Published - Aug 2008

ASJC Scopus subject areas

Business and International Management
Business, Management and Accounting(all)
Strategy and Management
Management of Technology and Innovation

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Reducing causal ambiguity in acquisition integration: Intermediate goals as mediators of integration decisions and acquisition performance

Abstract

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