Document Type

Article

Publication Date

2022

DOI

10.1017/jmo.2022.23

Publication Title

Journal of Management & Organization

Volume

28

Issue

3

Pages

564-586

Abstract

How organizations utilize capabilities to achieve competitive advantage and improve performance has received an abundance of scholarly attention. Both ordinary and dynamic capabilities (DC) enable organizations to achieve higher performance when leveraged appropriately and under favorable conditions. The complexity of an organization's motives for why and how different capabilities are acquired drives us further to explore what complementarities organizations might achieve and under what contexts. Specifically, we explore how firms engaging in mergers and acquisitions (M&A) to acquire dynamic and/or ordinary capabilities experience different market reactions and levels of short- and long-run value creation given environmental uncertainty. Our results support the acquisition of ordinary capabilities for predicting positive short-term market reactions and of DC for longer-run firm performance post-M&A, with uncertainty factors moderating these relationships. We discuss both the theoretical and practical implications of uncertainty and acquisitions of these capabilities and offer suggestions for future research.

Comments

© Cambridge University Press and Australian and New Zealand Academy of Management 2022.

Open Access Via ODU's Agreement with Cambridge

ORCID

0000-0002-3734-3969 (Irwin)

Original Publication Citation

Irwin, K., Gilstrap, C., Drnevich, P., & Sunny, M. (2022). The acquisition of capabilities: How firms use dynamic and ordinary capabilities to manage uncertainty. Journal of Management & Organization, 28(3), 564-586. https://doi.org/10.1017/jmo.2022.23

Download

Share

COinS