Transfer of socially complex knowledge in mergers and acquisitions

Abstract

Purpose

Taking the literature on knowledge and mergers and acquisitions as a basis, the purpose of this paper is to analyze some variables that influence the knowledge transfer in mergers and acquisitions.

Design/methodology/approach

Using data from a sample of 57 domestic Spanish mergers and acquisitions this paper examines the influence on the transfer of knowledge from the acquired firm to the acquiring firm (or lead firm) of: the socially complex nature of the knowledge to be transferred, the knowledge base of the acquiring firm, and two dimensions of the integration process. In addition, the paper analyses the moderating effect of socially complex knowledge on the relationship: dimensions of the integration process‐knowledge transfer.

Findings

The results obtained show that the social complexity of the knowledge, the knowledge base existing in the acquiring firm, and the frequency of rich communication media have a positive influence on knowledge transfer.

Research limitations/implications

The results should be interpreted with caution due to the size of the sample. Since the study was conducted in Spain the results could be affected by the cultural context. Further studies are required in order to corroborate the results and to explore these relationships over a longer period of time.

Practical implications

This paper offers several recommendations to help managers to improve knowledge transfer in mergers and acquisitions.

Originality/value

This study tests empirically a model of knowledge transfer in mergers and acquisitions that integrate key factors that can affect knowledge transfer success. This study can help one to understand the knowledge transfer better and complements the very few studies hitherto produced.

Citation

Castro Casal, C. and Neira Fontela, E. (2007), "Transfer of socially complex knowledge in mergers and acquisitions", Journal of Knowledge Management, Vol. 11 No. 4, pp. 58-71. https://doi.org/10.1108/13673270710762710