Abstract

Dynamic capabilities in merger and acquisition are complex events in the process of sustaining completive advantage of merging business for which we have incomplete understanding. The aim of the paper is to identify the role of dynamic capabilities in reinvention of business model of merging company in related diversification process by means of acquisition. The major contribution of paper is emerging conceptual model of research that connect acquisition based dynamic capabilities frameworks (Capron & Anand, 2007; Teece, 2007) with nine building blocks of business model (Osterwalder & Pigneur, 2009) together and illustration how acquisition based dynamic capabilities foster a reinvention of business models in ICT Industry. Presented methodology is encouraging to analyse importance and strengths of acquisition based dynamic capabilities and their role in changes of business models in M&A processes.

Highlights

  • Dynamic capabilities in merger and acquisition are complex events in the process of sustain completive advantage of merging business for which we have incomplete understanding, in part because researches have tended to consider only explanation of them

  • The aim of the paper is to identify the role of dynamic capabilities in reinvention of business model of merging company in related diversification process by means of acquisition that lead to sustained competitive advantages

  • The research main contribution is emerging conceptual model of research that connects acquisition based dynamic capabilities frameworks (Capron and Anand, 2007; Teece, 2009) with nine building blocks of business model (Osterwalder and Pigneur, 2009) together and, thereby, illustrates how acquisition based dynamic capabilities underpinning a reinvention of business models in Information and Communication Technologies Industry

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Summary

Introduction

Dynamic capabilities in merger and acquisition are complex events in the process of sustain completive advantage of merging business for which we have incomplete understanding, in part because researches have tended to consider only explanation of them. Successful innovative ideas can be brought to global market by means of acquisition process. The aim of the paper is to identify the role of dynamic capabilities in reinvention of business model of merging company in related diversification process by means of acquisition that lead to sustained competitive advantages. This case study of WhatsApp acquisition by Facebook was selected due to following reasons. The research illustrates how organization deals with the commercialization of innovation by means of acquisition of engineering team, technologies and users’ base. The research main contribution is emerging conceptual model of research that connects acquisition based dynamic capabilities frameworks (Capron and Anand, 2007; Teece, 2009) with nine building blocks of business model (Osterwalder and Pigneur, 2009) together and, thereby, illustrates how acquisition based dynamic capabilities underpinning a reinvention of business models in Information and Communication Technologies Industry

Literature review
Acquisition based dynamic capabilities
Business model of merging company

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