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Strategic Objectives, Alignments, and Firm Performance

Chen, Kun
http://rave.ohiolink.edu/etdc/view?acc_num=kent1396945707

Abstract Details

2014, PHD, Kent State University, College of Business and Entrepreneurship, Ambassador Crawford / Department of Marketing and Entrepreneurship.
This dissertation is on mergers and acquisitions (M&A). Two studies are proposed to examine what factors impact performance and partner selection in the context of M&A. Event study methodology is used to capture the capital market effects of announcements of M&A in both studies. Four hundred and eighty two announcements are identified from 1980 to 2011 from the SDC M&A database. Other data sources include CRSP and COMPUSTAT. The Wall Street Journal and PR Newswire are used to specify the announcement dates. Previous research examines the impact of corporate strategy on performance. Study one extends previous research by introducing the notion of alignment between corporate strategy and strategic objective. Corporate strategy is of two types – value creation (emphasis on R&D) or value appropriation (emphasis on marketing). Strategic objectives are operationalized as either enhancement or diversification. The study proposes that firms whose corporate strategies are aligned with strategic objectives are better performers than those that are not aligned. Empirical findings based on capital market reactions strongly support this proposition. Study two accesses the effect of capability alignment between acquiring and acquired firms. Capability alignment between strategic partners is operationalized along marketing and R&D. Empirical results show that the capital market favors acquiring firms that have strong R&D capability. Although technological innovation is a motivating factor in a firm’s acquisition, capital market actually favors acquiring firms that have weak R&D capability but strong marketing capability and acquired firms that have weak R&D but strong marketing capability for their enhancement objective.
Michael Hu (Committee Co-Chair)
Butje Patuwo (Committee Co-Chair)
104 p.
Marketing
RD capability; Marketing capability; mergers and acquisitions; alignment; event study

Recommended Citations

Citations

  • Chen, K. (2014). Strategic Objectives, Alignments, and Firm Performance [Doctoral dissertation, Kent State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=kent1396945707

    APA Style (7th edition)

  • Chen, Kun. Strategic Objectives, Alignments, and Firm Performance. 2014. Kent State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=kent1396945707.

    MLA Style (8th edition)

  • Chen, Kun. "Strategic Objectives, Alignments, and Firm Performance." Doctoral dissertation, Kent State University, 2014. http://rave.ohiolink.edu/etdc/view?acc_num=kent1396945707

    Chicago Manual of Style (17th edition)

kent1396945707
3,132
© 2014, some rights reserved.Creative Commons License Strategic Objectives, Alignments, and Firm Performance by Kun Chen is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License. Based on a work at etd.ohiolink.edu.
This open access ETD is published by Kent State University and OhioLINK.