Resource complementarity in business combinations: Extending the logic to organizational alliances

    Authors

    J. S. Harrison; M. A. Hitt; R. E. Hoskisson;R. D. Ireland

    Comments

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    Abbreviated Journal Title

    J. Manage.

    Keywords

    COMPETITIVE ADVANTAGE; INTERNATIONAL EXPANSION; PERFORMANCE; FIRMS; ACQUISITION; DIVERSIFICATION; PRIVATIZATION; COLLABORATION; STRATEGIES; KNOWLEDGE; Business; Psychology, Applied; Management

    Abstract

    Organizations are combining resources through acquisitions and alliances in record numbers. Since publication of our original study in 1991, research has confirmed that resource complementarity creates the potential for greater synergy from acquisitions and alliances, leading to higher long-term firm perfonnance as an end result. The valuable, unique, and inimitable synergy that can be realized by integrating complementary resources provides an opportunity for the firm to create competitive advantages that can be sustained for a period of time. In addition, complementary resources present opportunities for enhanced learning as well as the development of new capabilities. However, we also suggest that the existence of complementary resources is a necessary but insufficient condition to achieve synergy. The resources must be effectively integrated and managed to realize the synergy. (C) 2001 Elsevier Science Inc. All rights reserved.

    Journal Title

    Journal of Management

    Volume

    27

    Issue/Number

    6

    Publication Date

    1-1-2001

    Document Type

    Editorial Material

    Language

    English

    First Page

    679

    Last Page

    690

    WOS Identifier

    WOS:000172894200005

    ISSN

    0149-2063

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