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
Document type :
Journal articles
Complete list of metadatas
https://hal-rennes-sb.archives-ouvertes.fr/hal-01998000
Contributor : Steven Gouin <>
Submitted on : Tuesday, January 29, 2019 - 1:09:08 PM
Last modification on : Thursday, February 7, 2019 - 2:44:38 PM

Links full text

openaccess

Identifiers

Collections

ESC-RENNES

Citation

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⟩

Export

BibTeX TEI DC DCterms EndNote

Share

Metrics

Record views

54

Contact

CCSD