This study examines the role of target firm power in mergers and acquisitions (M&As). We investigate the effects of the position, referent and expert bases of power of the target firm on reverse knowledge transfer. We test our hypotheses on a sample of 123 responses from 106 domestic and foreign acquisitions conducted by Finnish companies. We find that a moderate level of target firm power supports reverse knowledge transfer. Also, we show that referent and expert bases of power are particularly important in explaining the overall degree of target firm power. This study contributes to the M&A literature by elaborating on the role of target firm power.
|Peer-reviewed scientific journal||International Studies of Management and Organization|
|Number of pages||17|
|Publication status||Published - 2018|
|MoE publication type||A1 Journal article - refereed|
- 512 Business and Management
- mergers and acquisitions
- target firm power