:::
Open Access Open Access  Restricted Access Subscription or Fee Access

A cognitive perspective of decision making in acquisition programs: insights from the high technology industry

Hani Sarkis

Abstract


Abstract: This paper explores the strategy formulation and the concepts related to decision making regarding acquisition formation in the information technology industry. Acquisitions, as part of the technical collaboration between firms in the information technology industry, have been intensive since 1990. The complexity of the related issues, critical success factors, conditions, triggers, motivations, causes, effects and their interlinked relationships, have not been fully covered in the literature of strategic management. In this paper, they are explored with a holistic approach to the study of strategic management, using a cause and effect mapping technique, known as cognitive mapping. The application of this research tool and the results help us to understand the importance of each concept (causes and consequences) used, the interrelationships between them, and the complexity of the decision making process. The paper is a contribution to the field of strategic management and to the cognitive approach in the management science.


Keywords


Acquisition, cognitive mapping, decision, strategy, high-tech

References


References

Ackermann F, Eden C. (2005). "Using Causal Mapping to Support Information Systems Development: Some Considerations" in Narayanan, V. K. and Armstrong, D. J., Eds, "Causal Mapping for Research in Information Technology. Idea Group Publishing: Hershey, PA

Banxia_Software_Ltd. 2005. Decison Explorer, 3.3 ed.: www.banxia.com

Bettis RA, Hitt MA. (1995a). The new competitive landscape. Strategic Management Journal 16: 7-19

Bettis RA, Prahalad CK. (1995b). The dominant logic: Retrospective and extension. Strategic Management Journal 16: 5-14

Borys B, Jemison DB. (1989). Hybrid arrangements as strategic alliances: Theoretical issues in organizational combinations. Academy of Management Review 14(2): 234-249

Brush TH. (1996). Predicted change in operational synergy and post acquisition performance of acquired businesses. Strategic Management Journal 17: 1-24

Cannella AA, Hambrick DC. (1993). Effects of executive departures on the performance of acquired firms. Strategic Management Journal 14: 137-152

Chatterjee S. (1986). Types of synergy and economic value: The impact of acquisitions on merging and rival firms. Strategic Management Journal 7: 119-139

Clarke I, Mackaness W, Ball B, Horita M. (2003). The devil is in the detail: visualising analogical thought in retail location decision making. Environment and Planning 30(1): 15-36

Coff RW. (1997). Human assets and management dilemmas: Coping with hazards on the road to resource based theory. Academy of Management Review 22(2): 374-402

Cossette P. (2002). Analysing the thinking of F. W. Taylor using cognitive mapping. Management Decision 40(2): 168-182

Cossette P, Audet M. (1994). Qu'est-ce qu'une carte cognitive. In P Cossette (Ed.), Cartes cognitives et organizations, ESKA ed.: 13-33. Les presses de l'universite laval: Quebec/Paris

Cossette P, Lapointe A. (1997). A mapping approach to conceptual models : The case of macroeconomic theory. Canadian Journal of Administrative Sciences 14 (1): 41-51

Daniels K, Johnson G, Chernatony Ld. (2002). Task and institutional influences on managers' mental models of competition. Organization Studies 23(1): 31-62

Datta DK. (1991). Organizational Fit and Acquisition Performance: Effects of Post-Acquisition Integration. Strategic Management Journal 12: 281-297

Duhaime IM, Schwenk CR. (1985). Conjectures on cognitive simplification in acquisition and divestment decision making. Academy of Management Review 10(2): 287-295

Duysters G, Man A-Pd. (2003). Transitory alliances: an instrument for surviving turbulent industries? R&D Management 33(1): 49-58 (10 pp.)

Eden C, Ackermann F. (1998). Making strategy: The journey of strategic management. Sage Publications

Eden C, Ackermann F. (2004). Cognitive mapping expert views for policy analysis in the public sector. European Journal of Operational Research 152(3)

Eisenhardt K, Zbaracki MJ. (1992). Strategic decision making. Strategic Management Journal 13: 17-37

Eisenhardt KM. (1989). Agency theory: An assessment and review. Academy of Management Review 14(1): 57-74

Feeser HR, Willard GE. (1990). Founding strategy and performance: A comparison of high and low growth high tech firms. Strategic Management Journal 11: 87-98

Ferrary M. (2003). Managing the disruptive technologies life cycle by externalizing the research: social network and corporate venturing in the Silicon Valley. International Journal of Technology Management 25(1/2)

Galbraith CS, Stiles CH. (1984). Merger strategies as a response to bilateral market power. Academy of Management Journal 27(3): 511-524

Gawer A, Cusumano MA. (2002). Platform Leadership: How Intel, Microsoft, and Cisco Drive Industry Innovation. Harvard Business School Press

Geletkanycz MA, Hambrick DC. (1997). The external ties of top executives: Implications for strategic choice and performance. Administrative Science Quarterly 42(4): 654-681

Gioia DA, Chittipeddi K. (1991). Sensemaking and sensegiving in strategic change initiation. Strategic Management Journal 12: 433-448

Gulati R. (1999). Network location and learning: The influence of network resources and firm capabilities on alliance formation. Strategic Management Journal 20: 397-420

Hagedoorn J, Duysters G. (2002). External sources of innovative capabilities: The preference for strategic alliances or mergers and acquisitions. Journal of Management Studies 39(2)

Haleblian J, Finkelstein S. (1999). The influence of organizational acquisition experience on acquisition performance: A behavioral learning perspective. Administrative Science Quarterly 44(1): 29-56

Hasfi T, Thomas H. (2005). The field of strategy: In search of a walking stick. European Management Journal 23(5): 507-519

Hayward M, Hambrick D. (1997). Explaining the premiums paid for large acquisitions: Evidence of CEO hubris. Administrative Science Quarterly(42): 103-127

Hitt MA, Hoskisson RE, Ireland RD. (1990). Mergers and acquisitions and managerial commitment to innovation in m-form firms. Strategic Management Journal 11: 29-47

Hitt MA, Hoskisson RE, Ireland RD, Harrison JS. (1991a). Effects of acquisitions on R&D inputs and outputs. Academy of Management Journal 34(3): 693-706

Hitt MA, Hoskisson RE, Johnson RA, Moesel DD. (1996). The market for corporate control and firm innovation. Academy of Management Journal 39(5): 1084-1119

Hitt MA, Tyler BB. (1991b). Strategic decision models: Integrating different perspectives. Strategic Management Journal 12: 327-351

Hoffman WH, Schaper-Rinkel W. (2001). Acquire or ally? - A strategy framework for deciding between acquisition and cooperation. Management International Review 41(2): 131-159

Hopkins HD. (1987). Acquisition strategy and the market position of acquiring firms. Strategic Management Journal 8: 535-547

James AD, Georghiou L, Metcalfe JS. (1998). Integrating technology into merger and acquisition decision making. Technovation 18(8/9)

Jemison DB, Sitkin SB. (1986). Corporate acquisitions: A process perspective. Academy of Management Review 11(1): 145-163

Kusewitt JB. (1985). An exploratory study of strategic acquisition factors relating to performance. Strategic Management Journal 6: 151-169

Lincoln YS, Guba EG. (1985). Establishing Trustworthiness, Naturalistic Inquiry, Vol. 11: 289-331. Sage Publication

Lubatkin M. (1983). Mergers and the performance of the acquiring firm. Academy of Management Review 8(2): 218-225

March J, Simon H. (1958). Organizations. Wiley: New York

Mayer D, Kenney M. (2004). Economic action does not take place in a Vacuum: Understanding Cisco's acquisition and development strategy. Industry and Innovation 11(4): 299

Mintzberg H, Raisinghani P, Theoret A. (1976). The structure of the unstructured decision processes. Administrative Science Quarterly 2: 246-275

Morton A, Ackermann F, Belton V. (2003). Technology-driven and model-driven approaches to group decision, support: focus, research philosophy, and key concepts. European Journal of Information Systems 12(2): 110-126

Nahavandi A, Malekzadeh AR. (1988). Acculturation in Mergers and Acquisitions. Academy of Management Review 13(1): 79-90

Oliver C. (1997). Sustainable competitive advantage: Combining institutional and resource based views. Strategic Management Journal 18(9): 697-713

Paine FT, Power DJ. (1984). Merger strategy: An examination of Druker's five rules for successful acquisitions. Strategic Management Journal 5: 99-110

Pennings JM, Barkema H, Douma S. (1994). Organizational learning and diversification. Academy of Management Journal 37(3): 608-640

Peteraf MA. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal 14: 179-191

Pfeffer J. (1972). Merger as a response to organizational interdependence. Administrative Science Quarterly 17: 382-394

Porter M. (1980). Competitive Strategy. Free Press

Prahalad CK, Hamel G. (1990). The core competence of the corporation. Harvard business review: 79-91

Prahalad CK, Hamel G. (1994). Competitng for the future. Harvard Business School Press: Boston

Quelin B. (2000). Core competencies, R&D management and partnerships. European Management Journal 18(5): 476-487

Roberts EB, Liu WK. (2001). Ally or acquire? MIT Sloan Management Review

Robertson TS, Gatignon H. (1998). Technology development mode: A transaction cost conceptualization. Strategic Management Journal 19: 515-531

Schwenk CR. (1984). Cognitive simplification processes in strategic decison making. Strategic Management Journal 5: 111-128

Shelton LM. (1988). Strategic business fits and corporate acquisition: Empirical evidence. Strategic Management Journal 9: 279-287

Simon H. (1976). Administrative behavior. Free Press: New York

Singh H, Montgomery C. (1987). Corporate acquisition strategies and economic performance. Strategic Management Journal 8: 377-386

Taylor RN. (1975). Psychological determinants of bounded rationality: Implications for decision making. Decision Sciences 6: 409-429

Teece DJ. (1982). Towards an economic theory of the multiproduct firm. Journal of Economic Behavior and Organization 3: 39-63

Trautwein F. (1990). Merger motives and merger prescriptions. Strategic Management Journal 11: 283-295

Tversky A, Kahneman D. (1974). Judgment under uncertainty: Heuristics and biases. Science 185: 1124-1131

Tyler BB, Steensma HK. (1995). Evaluating technological collaborative opportunities: A cognitive modeling perspective. Strategic Management Journal 16: 43-70

Walker G, Weber D. (1984). A transaction cost approach to make-or-buy decisions. Administrative Science Quarterly 29(3): 373-391

Walsh J. (1995). Managerial and organizational cognition: Notes from a trip down memory lane. Organization Science 6

Walter GA, Barney JB. (1990). Management objectives in mergers and acquisitions. Strategic Management Journal 11: 79-86

Wernerfelt B. (1984). A resource-based view of the firm. Strategic Management Journal 5: 171-180

Williams T, Ackermann F, Eden C. (2003). Structuring a delay and disruption claim: An application of cause-mapping and system dynamics. European Journal of Operational Research 148(1): 192-204

Williamson OE. (1975). Markets and Hierarcies, analysis and antitrust applications: A study in the economics of internal organizations. Free Press: New York

Williamson OE. (1986). Transaction-cost economics: The governance of contractual relations. In JB Barney, WG Ouchi (Eds.), Organizational Economics: 98-129. Jossey Bass

Williamson OE. (1999). Strategy research: Governance and competence perspectives. Strategic Management Journal 20: 1087-1108

Yip GS. (1982). Diversification entry: Internal development versus acquisition. Strategic Management Journal 3: 331-345


Full Text: PDF

Refbacks

  • There are currently no refbacks.




______________________________________________________________________________

The Journal of Modern PM (ISSN: 2317-3963) | info@journalmodernpm.com