Value creation in corporate acquisitions: Linking value creation logic, organisational capabilities and implementation processes

Richard Schoenberg; Cliff Bowman

doi:10.1108/S1479-361X(2010)0000009010

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Advances in Mergers & Acquisitions

ISSN: 1479-361X
Series editor(s): Sydney Finkelstein and Cary Cooper

Subject Area: Strategy

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Value creation in corporate acquisitions: Linking value creation logic, organisational capabilities and implementation processes

Document Information:
Title:	Value creation in corporate acquisitions: Linking value creation logic, organisational capabilities and implementation processes
Author(s):	Richard Schoenberg, Cliff Bowman
Volume:	9 Editor(s): Cary L. Cooper, Sydney Finkelstein ISBN: 978-0-85724-465-9 eISBN: 978-0-85724-466-6
Citation:	Richard Schoenberg, Cliff Bowman (2010), Value creation in corporate acquisitions: Linking value creation logic, organisational capabilities and implementation processes, in Cary L. Cooper, Sydney Finkelstein (ed.) Advances in Mergers and Acquisitions (Advances in Mergers & Acquisitions, Volume 9), Emerald Group Publishing Limited, pp.153-175
DOI:	10.1108/S1479-361X(2010)0000009010 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Article type:	Chapter Item
Abstract:	We propose a typology of acquisition value creation logics derived from the dynamic capability literature and explore the organisational capabilities and implementation processes required for the effective delivery of three value creation logics: governance-based, cost-based and knowledge-based. We argue that each value creation logic calls for a specific and distinct set of acquirer capabilities and post-acquisition implementation processes. We put forward a contingency approach, where effective corporate acquirers make a conscious choice as to their predominant value creation logic based on a consideration of their organisational capabilities, which, in turn, defines the characteristics of appropriate target companies and the necessary implementation actions required to realise value post-acquisition. We discuss the implications for both acquiring firm executives and future M&A research.