The Strategic Fit

Can fit different sizes

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.

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About Sami Malallah
My thoughts and ideas are without politics, sarcasm or negativity. Please comment on them and share them with others.

4 Responses to The Strategic Fit

  1. Adel says:

    Well its good to say “lets hope for the best” or as my grandmother use to say back in the 70’s “inshalah we will get better next year” but as i grew older and older i found out that im saying to my kids that same line which is “inshalah next year things will get better” now how long should i wait to see the result change in the market and how the rich companies uses there influence to crush small business like a can of soda, mr. sami sorry to say but your blog is nice and i love your thoughts but you and I belong in a different country the gulf region is full of those polar bears that eats and dosnt share that salamon fish they catch off the ocean.

    Adel Al-anizi

    • Market change should take long time before you notice it. One of facts of life is “the big cat eats the small mouse” but recently it changed to the “fast out perform the slow”. Small or big companies can compete by their agility and and readiness to learn and change. What is applicable in the Gulf region is applicable in the rest of the world, and the opposite is true.

  2. I’ll immediately grab your rss feed as I can not in finding
    your email subscription hyperlink or newsletter service.
    Do you have any? Please let me know so that I could subscribe.

    Thanks.

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