This article develops and tests a theory on the evolution of complex organizational decisions, such as the decision to integrate (or not) a target company during the post-acquisition management phase. Using a sample of US bank mergers, we show that persistence in—or variation of—integration deci- sions depends on two key factors: integration experience and related knowledge codification. Integration experience tends to generate persistence in the integration decision, which is associated with poor deal performance. Moreover, we show that when knowledge codification is low, the persist- ence caused by integration experience further increases. However, when knowledge codification is sufficiently high, the inertial effect of experience diminishes significantly. Hence, high levels of know- ledge codification can weaken the effects of decision inertia, which suggests that as knowledge codifi- cation increases, the role of knowledge codification switches from strengthening inertia to promoting learning.

Learning or inertia? The impact of experience and knowledge codification on post-acquisition integration / Castellaneta, Francesco; Valentini, Giovanni; Zollo, Maurizio. - In: INDUSTRIAL AND CORPORATE CHANGE. - ISSN 1464-3650. - 27:3(2018), pp. 577-593. [10.1093/icc/dtx043]

Learning or inertia? The impact of experience and knowledge codification on post-acquisition integration

Giovanni Valentini;
2018

Abstract

This article develops and tests a theory on the evolution of complex organizational decisions, such as the decision to integrate (or not) a target company during the post-acquisition management phase. Using a sample of US bank mergers, we show that persistence in—or variation of—integration deci- sions depends on two key factors: integration experience and related knowledge codification. Integration experience tends to generate persistence in the integration decision, which is associated with poor deal performance. Moreover, we show that when knowledge codification is low, the persist- ence caused by integration experience further increases. However, when knowledge codification is sufficiently high, the inertial effect of experience diminishes significantly. Hence, high levels of know- ledge codification can weaken the effects of decision inertia, which suggests that as knowledge codifi- cation increases, the role of knowledge codification switches from strengthening inertia to promoting learning.
M&A, Learning
Learning or inertia? The impact of experience and knowledge codification on post-acquisition integration / Castellaneta, Francesco; Valentini, Giovanni; Zollo, Maurizio. - In: INDUSTRIAL AND CORPORATE CHANGE. - ISSN 1464-3650. - 27:3(2018), pp. 577-593. [10.1093/icc/dtx043]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11385/221660
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