Impact of Proximity and Management Interventions on Knowledge Transfer in Technology-based Mergers and Acquisitions

Abstract

The present study proposes a conceptual framework for investigation of how various dimensions of proximity (i.e. geographical, cognitive, organizational) and management interventions influence knowledge transfer and innovation in technology M&A This research objective is achieved through a qualitative multiple case study, which included three M&A cases involving technology-based companies. Evidence supports the links between various dimensions of proximity and knowledge transfer, and subsequently, between knowledge transfer and innovation. The study also confirms the importance of management interventions, especially in retaining key employees to preserve and transfer knowledge. The study contributes to the literature by illuminating the relationship between various dimensions of proximity and M&A knowledge transfer, which so far has not been well researched and established by prior studies, and by providing a new perspective to view cognitive proximity. In addition, it provides directions for managerial practices to select M&A partners and to manage post-M&A knowledge transfer.