The effect of cloud providers’ firm size and firm age on M&A activity and firm performance

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Issue Date
2018-12-17
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en
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Abstract
Although the concepts of M&As, as well as firm size and firm age, received lots of attention in research, not much research has been conducted that combines them, especially not in regarding the cloud computing industry. This study addresses that gap by examining the relationship between cloud providers' M&A activity, firm size, firm age with firm performance. A total of 44 cloud providing companies are included in this study, with data collected over three years, 2014 till 2016. Results show that M&A activity on its own does not influence the firm performance of a cloud provider significantly. However, it is the combination of M&A activity with firm size and firm age, which are of influence. The number of M&As conducted by a cloud provider in combination with firm size, as well as the combination of the total value of M&As with firm age, showed positive effects on firm performance. Concluding, this study provides insight into the relationship between M&A activity, firm size and firm age with firm performance regarding the cloud computing market.
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Faculteit der Managementwetenschappen
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