Authors: Alessandro Signorini; Stan Paliwoda
Scholars (Hennart and Reddy, 2000) underline how acquisitions are affected by significant costs that weaken their performance in the short-term and long-term. Acquisition costs are often held responsible for average zero or even negative returns that a significant number of acquisitions show in their life-cycle (Capron and Pistre, 2002: Sirower, 1997). For this reason, academic research shows an increasing interest in factors that can improve the overall performance of acquisitions. In particular, Zaheer et al. (2010) and Meschi et al. (2011) analyse the relative impact that previous alliance cooperation may have on acquisitions and empirically evaluate whether or not previous alliances improve the acquisition performance. Both researches find contrasting results:Zaheer et al. (2010) find no conclusive effect for acquisitions with prior alliance relationships, whereas Meschi et al. (2011) point out that previous alliance relationships have a positive effect on acquisitions if established in a specific period time after the formation of the alliance relationship. Therefore, further research on effects of alliances on acquisition performance is required. This paper focuses on the effects of previous alliances on acquisitions in the civil airline industry. The civil airline industry has been chosen because alliances over the 1990s and 2000s registered record growth in terms of both airlines and resources involved (Airline Business, 2010: Airline Business, 2007). Acquisitions are less significant: nevertheless, they are set to develop extensively in the long-term (Airline Business, 2010). In addition, technological developments are external in the civil airline industry, because they stem from the aviation manufacturing industry (Sparaco, 2010). Therefore, the impact of exogenous technology on acquisition performance can be evaluated in this study
Journal: n.a. (n.a. – n.a.)
Web Address: n.a.
Publish Year: 2012
Conference: Rome, Italy (2012)