Multimarket Contact and Corporate Acquisitions: The Moderating Effect of Organisational Learning Event as iCalendar

(Graduate School of Management)

14 March 2018

10 - 11am

Venue: The University of Auckland Business School, Level 1, Room 153, 12 Grafton Road, Auckland, 1010

Presenter: Grigorij Ljubownikow, University of Auckland Business School, Graduate School of Management

Abstract:
Acquisitions represent a popular strategy to gain market power and change the structure of an industry. However, they rarely go unchallenged and often lead to responses from industry competitors. Hence, in this paper, we ask when and why a company would decide to pursue an acquisition, considering the possibility that rivals would respond aggressively to such a move. Building on multimarket contact theorising, we suggest that firms refrain from engaging in corporate acquisitions in light of multimarket contact. We further draw on organisational learning arguments to suggest that experiential and vicarious learning provides firms with valuable insights that can help them offset some of the negative consequences of retaliation by competitors in response to acquisition activities. In our empirical tests of a sample of 2,547 bank holding companies from 2000 to 2010 we find partial support for our predictions.

Bio:
Grigorij Ljubownikow is a lecturer in strategy whose main research interest is in understanding how competition influences and is influenced by various aspects of firm strategy. He received his PhD in International Business from the University of Auckland Business School. Before joining the Graduates School of Management, Greg was a Professional Teaching Fellow in the Department of Management and International Business. His current research revolves around the effect of multimarket interdependencies on competitive behaviour and how competitive pressures influence diversification and alliance strategies. 

For more information contact:
Karin Olesen
Email: k.olesen@auckland.ac.nz
Ext: 87145