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Micro-foundations of organizational ambidexterity in the context of cross-border mergers and acquisitions

Micro-foundations of organizational ambidexterity in the context of cross-border mergers and acquisitions
Micro-foundations of organizational ambidexterity in the context of cross-border mergers and acquisitions
Micro-foundational approaches can enable firms to develop organizational ambidexterity, which is critical to long-term prosperity. However, to date, few studies have examined how mergers and acquisitions (M&A)—processes reliant on knowledge transfer—provide a useful organizational context through which to understand the achievement of organizational ambidexterity. Considering organizational ambidexterity from the viewpoint of exploitative and explorative innovation, we examine how behavioral contexts (corporate entrepreneurship) and structure (integration) regulate knowledge transfer activities at the micro-foundational and firm levels within a cross-border M&A context. Analysis of 143 cross-border M&As completed by United Kingdom (UK) acquiring firms revealed that: (1) knowledge sharing between the acquirer and the acquired leads to organizational ambidexterity; (2) increased use of the acquired target's capabilities has a negative effect on organizational ambidexterity; (3) overall, capability sharing is positively related to organizational ambidexterity; (4) corporate entrepreneurship has both negative and positive moderating effects (on use of the acquired target's capabilities and capability sharing, respectively), while integration positively moderates the effects of knowledge sharing on organizational ambidexterity.
Capabilities, Corporate entrepreneurship, Knowledge sharing, Merger and acquisitions, Micro-foundations, Organizational ambidexterity
0040-1625
1-14
Hughes, Paul
24d1abee-289d-4b6f-afd0-cc6f1ffe99c0
Hughes, Mat
d8e26c53-10b2-4225-87d6-a278d520aba9
Stokes, Peter
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Rodgers, Peter
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Degbey, William
c5fe4086-9a63-4b60-995e-6a30bf43c3a4
Hughes, Paul
24d1abee-289d-4b6f-afd0-cc6f1ffe99c0
Hughes, Mat
d8e26c53-10b2-4225-87d6-a278d520aba9
Stokes, Peter
5b3c049f-89be-4f1f-b0ff-12287fedcedb
Rodgers, Peter
78e39552-3d65-4b44-b0e1-10043ba3ff5d
Degbey, William
c5fe4086-9a63-4b60-995e-6a30bf43c3a4

Hughes, Paul, Hughes, Mat, Stokes, Peter, Rodgers, Peter and Degbey, William (2020) Micro-foundations of organizational ambidexterity in the context of cross-border mergers and acquisitions. Technological Forecasting and Social Change, 153, 1-14, [119932]. (doi:10.1016/j.techfore.2020.119932).

Record type: Article

Abstract

Micro-foundational approaches can enable firms to develop organizational ambidexterity, which is critical to long-term prosperity. However, to date, few studies have examined how mergers and acquisitions (M&A)—processes reliant on knowledge transfer—provide a useful organizational context through which to understand the achievement of organizational ambidexterity. Considering organizational ambidexterity from the viewpoint of exploitative and explorative innovation, we examine how behavioral contexts (corporate entrepreneurship) and structure (integration) regulate knowledge transfer activities at the micro-foundational and firm levels within a cross-border M&A context. Analysis of 143 cross-border M&As completed by United Kingdom (UK) acquiring firms revealed that: (1) knowledge sharing between the acquirer and the acquired leads to organizational ambidexterity; (2) increased use of the acquired target's capabilities has a negative effect on organizational ambidexterity; (3) overall, capability sharing is positively related to organizational ambidexterity; (4) corporate entrepreneurship has both negative and positive moderating effects (on use of the acquired target's capabilities and capability sharing, respectively), while integration positively moderates the effects of knowledge sharing on organizational ambidexterity.

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TFS_2019_1345_Revision_1_V0 - Accepted Manuscript
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More information

Accepted/In Press date: 25 January 2020
e-pub ahead of print date: 13 February 2020
Published date: April 2020
Keywords: Capabilities, Corporate entrepreneurship, Knowledge sharing, Merger and acquisitions, Micro-foundations, Organizational ambidexterity

Identifiers

Local EPrints ID: 442407
URI: http://eprints.soton.ac.uk/id/eprint/442407
ISSN: 0040-1625
PURE UUID: e6490dd6-5ed0-4402-8177-7f06ea940116

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Date deposited: 14 Jul 2020 16:39
Last modified: 14 Jul 2022 04:02

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Contributors

Author: Paul Hughes
Author: Mat Hughes
Author: Peter Stokes
Author: Peter Rodgers
Author: William Degbey

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