Impact of Information Technology Infrastructure Flexibility on Mergers and Acquisitions

Jose Benitez 1 Gautam Ray Jörg Henseler 2
1 Rennes School of Business
2 ULISBOA - Universidade de Lisboa
Abstract : Although mergers and acquisitions (M&A) are a common strategy to reduce costs and pursue growth, the variance in returns from M&A is very high. This research examines how information technology (IT) infrastructure flexibility affects M&A. We use a combination of secondary as well as matched-pair survey data from 100 mid-size firms in Spain to investigate this relationship. The empirical analysis suggests that IT infrastructure flexibility affects M&A through two key pathways: a flexible IT infrastructure facilitates the development of business flexibility that provides the responsiveness to seize M&A opportunities and make acquisitions, and a flexible IT infrastructure facilitates the development of post-M&A IT integration capability that provides the control to integrate the IT and business resources of the acquired firm and realize the economic benefits from M&A.
Keywords : Dynamic capability IT infrastructure flexibility business flexibility post-M&A IT integration capability M&A activities post-M&A performance business value of IT endogeneity
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Journal articles
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https://hal-rennes-sb.archives-ouvertes.fr/hal-01998000
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Submitted on : Tuesday, January 29, 2019 - 1:09:08 PM
Last modification on : Thursday, February 7, 2019 - 2:44:38 PM

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Jose Benitez, Gautam Ray, Jörg Henseler. Impact of Information Technology Infrastructure Flexibility on Mergers and Acquisitions. MIS Quarterly, University of Minnesota, Management Information Systems Research Center, 2018, 42 (1), pp.25-43. ⟨10.25300/MISQ/2018/13245⟩. ⟨hal-01998000⟩

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