Seminario Elio Shijaku - Nathalie Cerón

Elio Shijaku and Nathalie Cerón (Universitat de Barcelona and UAB, respectively) will present their paper “Acquisitions Under Stress – An Interdisciplinary Study of Acquisitions as a System Subject to Wear and Erosion.” An abstract is below and the extended  abstract is attached.Abstract:Acquisitions are inherently complex, yet existing research often examines their central components in isolation, potentially overlooking critical interdependencies. Addressing this fragmentation, we adopt a phenomenon-driven, interdisciplinary approach to integrate knowledge using simulation modeling informed by meta-analytical data and techniques from reliability engineering. Leveraging the Weibull distribution, we simulate how combinations of acquisition characteristics (e.g., cultural distance and payment methods) influence performance transitions under varying levels of stress. Our findings reveal factors driving shifts from synergy to value erosion for acquisition variables. For example, while prior acquisition experience sustains synergies, it may exacerbate performance declines under increased stress. This contributes to theory development by conceptualizing M&A as a system prone to wear and failure, characterized by structural conditions, factors to wear and gradual erosion, as well as context-specific factors. Our interdisciplinary approach deepens our understanding of acquisition success, and it challenges established assumptions to provide actionable insights.