A darker side of knowledge transfer following international acquisitions

摘要

We consider a knowledge flow that dominates the international acquisition context but can actually harm foreign acquired firms' performance: non-location-specific knowledge transfer from acquirers to acquired firms (N-LSKT). Considering its behavioral consequences, we argue that such knowledge transfer often may destabilize existing power structures in foreign acquired firms prompting conflict and power struggles, and as a result negatively affects their performance. We find support for this adverse knowledge transfer effect. Only at very high levels of N-LSKT, when acquirers are likely to extend their own capabilities and associated power structures more completely, do the performance effects improve. Further, predeal success of acquirers and post-deal functional integration amplify, while acquirers' strategic control over the acquired firm alleviates the generally negative effects of N-LSKT. Copyright (c) 2015 John Wiley & Sons, Ltd.