Further Insight into Knowledge Transfer in Post‑acquisition Integration: A Case Study in a MNE

Abstract

Ineffective integration is commonly referred to in the literature as one of the reasons why mergers and acquisitions fail to meet expectations. An essential driver of post‑acquisition integration is the transfer of knowledge‑based resources. Efficient knowledge transfer in the post‑acquisition phase contributes significantly to the ultimate success of the acquisition. In this paper, a longitudinal case study approach is used to examine factors in the post‑acquisition integration of a MNE (multinational enterprise) that can directly or indirectly affect knowledge transfer, and to link them to their possible causes. Specifically, it focuses on factors in the areas of culture, language, communication and technology. To explore the development of post‑acquisition integration in the cross‑border setting, research was conducted four and six years after the acquisition both in the acquiring and the acquired unit. Results from an in‑depth interview and questionnaires show that the majority of negative factors influencing knowledge transfer in post‑acquisition integration could be minimized by proper and focused due diligence and more importantly, by a highly‑developed integration plan. The findings may be of considerable interest to medium‑sized companies acquiring entities abroad and could benefit future research into knowledge transfer in the post‑acquisition integration in an international setting.