PDW

This website provides the contents presented during our professional development workshop at the Academy of Management Annual Meeting in Atlanta, Georgia in August 2017. The original program entry is available here. We thank everyone who presented, attended and participated in this workshop!

0. Opening by Corey Phelps

Introduction into the topic of the interactions between alliances and acquisitions by prof. Corey Phelps (McGill University). Summary: The motivation of this PDW is based on the practical importance of this topic combined with limited scientific research in this area.

1. Inherited alliances by Aneta Oleksiak (available upon request)

Research on the impact of alliances obtained through acquisitions ('inherited alliances') by Aneta Oleksiak (University of Groningen). Summary: Existing alliance studies are inclined to limit their attention to original alliances and point to the initial design of alliances as a key determinant of long-term value creation. However, alliances are not always self-initiated and self-designed. Instead, they may also be inherited by firms upon pursued acquisitions. In the first part of my presentation, I will reflect on the interviews I have conducted with senior-level alliance executives from biotech sector and discuss the differences between self-initiated and acquired alliances and the implications of these differences. In the second part of my presentation, I will give a short overview of what kind of data approach we need to research alliances in the context of acquisitions.

Note: further information is available upon request ( a.a.oleksiak@rug.nl ).

2. Domestic alliance experience and cross-border M&As by Linda Rademaker

A study on the effect of domestic alliance experience with MNEs on entering foreign markets through M&A by prof. Linda Rademaker (BI Norwegian School of Business). Summary: While emerging market firms have been actively using foreign acquisitions as a way to access (technological) knowledge, little is known about domestic alternatives to technology-seeking foreign direct investment. In my presentation, I will discuss the influence of domestic alliances with foreign multinational enterprises on foreign acquisition decisions. In particular, I will examine the relation between a firm's alliance experience, its own technological capabilities, and foreign acquisitions. I highlight the necessity of understanding the content of learning in domestic alliances in order to better understand drivers of knowledge-seeking acquisitions and will discuss directions for future research.

3. Do acquirers benefit from target alliances by Panos Desyllas (available upon request)

An examination on the costs and benefits of acquiring a target firm with alliance partners by prof. Panos Desyllas (University of Bath). Summary: We are presenting findings from new research exploring the question of whether acquirers benefit from resources embedded in target firm alliance relationships. We propose that investors tend to be concerned with acquirers’ capacity to create and capture value from acquired relational resources due to factors inhibiting their effective redeployment. We investigate empirically this issue using an event study and a sample of 1,085 technology acquisitions in the USA.

4. How acquisitions affect alliance network structure by Exequiel Hernandez

A summary of research about the effects of M&A on alliance network structure by prof. Exequiel Hernandez (Wharton, University of Pennsylvania). Summary: Acquisitions modify the structure of alliance networks by causing two nodes (acquirer and target) to "collapse" and allowing the acquirer to inherit all of the target's alliances in a single transaction. I will present studies showing three implications of this insight. (1) Firms can gain network synergies through acquisitions. (2) The evolution of the alliance network depends on whether firms pursue internal vs. network synergies. (3) Acquisitions are a more effective path than forming or ending alliances (and sometimes the only path) to modify the alliance network in their favor.

5. Interactions between alliances & acquisitions by Dovev Lavie

A summary of existing research and outline for future research on the interplay of alliances and acquisitions by prof. Dovev Lavie (Technion, Israel Institute of Technology). Summary: In my presentation I intend to discuss what we know and what we don’t know about the interplay of alliances and acquisitions. I plan to discuss the state of the literature on three relevant themes: (1) the choice between alliances and acquisitions, (2) the effect of alliance experience on M&A activity and performance, and (3) the influence of M&As on alliances? For each of these themes I will also identify interesting directions for future research that can contribute to advancement of this literature.