Where Do Unique Synergies Come From? An Investigation of the Resource-based View of Acquisitions

Abstract

Although unique synergies are widely acknowledged to be crucial for acquirers’ profitability, their origin remains elusive. Theories linking unique synergies with resource similarity or complementary differences do not receive consistent support in the literature. Analyzing a sample of technology acquisitions demonstrates that two factors help complement our understanding of acquisitions and their performance implications. First, ‘one-size-fits-all’ theories of acquisition performance are unlikely to hold true for all acquisitions given that resources vary in the way they generate synergies when recombined. Second, studies need to account for the competitive bidding process implicit in acquisitions as acquirers profit by outperforming other bidders in the amount of synergy created. Overall, this study brings clarity to the literature by exploring the antecedents of value creation and capture in acquisitions.