M&A Experience and Firm Performance: The Moderating Role of Strategic Intent

Abstract

This study investigates the moderating role of strategic intent in the relationship between mergers and acquisitions (M&A) experience, both successful and unsuccessful, and firm performance. Drawing on the exploration-exploitation framework, the research examines whether the strategic intent behind an M&A influences how firms learn from past outcomes. Using a quantitative design, data from 9,808 completed M&A deals, involving publicly listed firms, were analyzed. Regression models tested the direct effects of M&A experience and the interaction with strategic intent on return on assets (ROA) three years post-acquisition. Results show that successful M&A experience positively impacts firm performance, while unsuccessful experience does not follow the hypothesized inverted U-shaped relationship. No evidence was found that strategic intent, whether explorative or exploitative, moderates the effect of M&A experience on firm performance. These findings suggest that, although learning from success is evident, the role of strategic intent in enhancing M&A performance is limited.