The Strategic Fit
December 29, 2009 4 Comments
The Strategic fit is thought to be the decisive factor during mergers and acquisition; however, Barkema & Schijven (2008) argues that strategic fit creates synergistic potential to integrate the acquired firm and this integration will enable the acquiring firm to realize the full benefit of the acquisition. Barkema & Schijven (2008) argue that firms start their acquisition by conducting a local search which results in a good integration but not the best.
Repeating the same acquisition process leads to ineffective organization that requires organizational restructuring to optimize its synergy with the acquired firms. “Acquisition experience enables an acquirer to learn to carry out its acquisitions more successfully from the start, thereby postponing the need for restructuring.” (Barkema & Schijven, 2008, p. 697).
Barkema, H., & Schijven, M. (2008). Toward unlocking the full potential of acquisitions: the role of organizational restructuring. Academy of Management Journal, 51(4), 696-722.