Less downsizing after a digital M&A? The impact of digital M&As on post-acquisition performance and -downsizing
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2023-07-06
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en
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To gain access to digital capabilities, firms increasingly acquire targets that heavily build upon digital technologies. Based on the dynamic capabilities theory, this research hypothesized the impact of acquisition premium on employee downsizing and post-acquisition performance in the context of digital M&As. Logistic regression and multiple regression analysis were employed for a dataset consisting of digital and non-digital M&As. The findings suggest that digital M&As are less likely to downsize their workforce following the M&A compared to non-digital M&As, but that acquisition premium does not play a role. Further, the findings suggest that employee downsizing has a negative effect on post-acquisition performance. The research contributes to the literature about digital M&As, downsizing, and emerging digital capabilities. Also, managerial implications, limitations, and directions for future research are discussed.
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Faculteit der Managementwetenschappen