Strategic Capability Transfer in Acquisition Integration

By David B. Jemison
1986| Working Paper No. 913

This paper presents a grounded theory of the acquisition integration process. The theory proposes that the central element in successful acquisition integration is the transfer of strategic capabilities between firms. A series of interactions between the firms’ managers leads to a set of conditions that facilitate the transfer of strategic capability and as a consequence an improvement in the firms’ competitive advantage. Thus, the theory links the processes involved in combining the firms with the improvement in competitive advantage expected from the acquisition by focusing on the strategic capability transfer process.