Abstract

Mergers and acquisitions (M&As) are often described as vehicles to achieve strategic growth and increase firm profitability. Combining the resources and markets of previously separate firms can increase the competitiveness of participating firms. M&As are typically used for accessing new customers (Lee and Lieberman 2010), technologies (Makri et al. 2010), or lower production costs (Hitt et al. 1998). To the extent that such additions are valuable in combination with previously controlled assets, this can allow firms participating in M&As to strengthen their competitiveness in relation to their environments.