The impact of Extra-entrainment and Rhythms of Repetitive Mergers and Acquisitions on Firm Performance: The Moderating Role of Industry Dynamism
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2025-06-23
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en
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The performance effects of when and under what conditions firms must accelerate or slow down their M&A activities are gaining attention in strategic fit literature. This study examines the effect of M&A rhythm and the synchronization of rhythm with competitors on firm performance and whether this influence is moderated by industry dynamism. A longitudinal panel of approximately 1,500 U.S. firms (2000-2018) was analyzed using fixed-effects regression models to test the hypothesis. The results reveal an inverted U-shaped relationship between firm rhythm and performance, indicating that an even-event-paced rhythm enhances firm performance. In contrast, synchronizing with the rhythm of competitors did not significantly affect firm performance. Additionally, industry dynamism did not alter the impact of extra-entrainment on firm performance. These findings contribute to strategic management theory by integrating temporal aspects in M&A research, suggesting that superior M&A rhythms require balancing consistency and flexibility. Furthermore, this study
provides a more nuanced view towards entrainment theory, suggesting that the benefits of extra-entrainment are context-specific.
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Faculteit der Managementwetenschappen