Mergers and acquisitions strategies for industry leaders, challengers, and niche players: Interaction effects of technology positioning and industrial environment

Bou Wen Lin, Wan Chen Chen, Po-Young Chu

Research output: Contribution to journalArticle

6 Scopus citations

Abstract

This study empirically investigates the merger and acquisition (M&A) strategies of focal firms by considering their market and technology position at the industry level. The results obtained using patents, firm M&A agreements, and the financial data of U.S. technology firms from 1997 through 2008 demonstrate how industry leaders, challengers, and niche players differ in their M&A strategic logic. Three industry environmental factors and two technology positioning factors exhibit different effects on firms' M&A strategies for varied market positions. The overall patterns reveal that niche players are more aggressive in leveraging their technology positions to adopt M&As for the purpose of acquiring access to external knowledge resources, while leaders tend to leverage their market positions and use M&As to further strengthen their market power. Challengers are more likely to engage in M&As when locating in unfavorable environmental markets, but they are less likely to engage in M&As when locating in technologically crowded areas.

Original languageEnglish
Article number7001580
Pages (from-to)80-88
Number of pages9
JournalIEEE Transactions on Engineering Management
Volume62
Issue number1
DOIs
StatePublished - 1 Feb 2015

Keywords

  • Industry challenger
  • Industry environment
  • Industry leader
  • Market position
  • Mergers and acquisitions (M&As)
  • Niche player
  • Technological positioning

Fingerprint Dive into the research topics of 'Mergers and acquisitions strategies for industry leaders, challengers, and niche players: Interaction effects of technology positioning and industrial environment'. Together they form a unique fingerprint.

  • Cite this