Knowledge transfer in acquisitions: Fear of exploitation and contamination

Abstract

► This study focuses on knowledge transfer in acquisitions. ► We examine to what extent motivational factors influence knowledge transfer. ► Fear of exploitation and contamination impede knowledge transfer in acquisitions. Knowledge transfer plays an important role in the creation of synergies in acquisitions. Acquisitions provide opportunities for learning and are often justified on the basis of the new knowledge made available or created by them. Nevertheless, we do not know enough about the factors that influence knowledge transfer in the context of acquisitions. This paper focuses on the motivation on part of individuals in the acquiring and target companies to share their knowledge and make use of the knowledge of their partner. More specifically, it is hypothesised that the fear of being exploited or contaminated by the other party will have a profound negative effect on the transfer of knowledge in acquisitions. These hypotheses are tested on a sample of acquisitions by Finnish companies in 2001–2004 and they are largely supported by the empirical analyses.