Strategic Management JournalVolume 19, Issue 7 p. 631-661 Research Article Resource redeployment following horizontal acquisitions in Europe and North America, 1988–1992 Laurence Capron, Laurence Capron Richard Ivey Business School, University of Western Ontario, London, Ontario, Canada INSEAD, Fontainebleau Cédex, FranceSearch for more papers by this authorPierre Dussauge, Pierre Dussauge HEC Graduate School of Management, Jouy en Josas Cédex, FranceSearch for more papers by this authorWill Mitchell, Corresponding Author Will Mitchell University of Michigan School of Business, Ann Arbor, Michigan, U.S.A.University of Michigan School of Business, Ann Arbor, MI 48109-1234, USA.Search for more papers by this author Laurence Capron, Laurence Capron Richard Ivey Business School, University of Western Ontario, London, Ontario, Canada INSEAD, Fontainebleau Cédex, FranceSearch for more papers by this authorPierre Dussauge, Pierre Dussauge HEC Graduate School of Management, Jouy en Josas Cédex, FranceSearch for more papers by this authorWill Mitchell, Corresponding Author Will Mitchell University of Michigan School of Business, Ann Arbor, Michigan, U.S.A.University of Michigan School of Business, Ann Arbor, MI 48109-1234, USA.Search for more papers by this author First published: 21 December 1998 https://doi.org/10.1002/(SICI)1097-0266(199807)19:7<631::AID-SMJ963>3.0.CO;2-9Citations: 383AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Abstract This paper studies redeployment of resources between target and acquiring businesses following horizontal acquisitions. The analysis draws from perspectives that emphasize the strategic importance of resources that are subject to market failure. We define a five-part typology of R&D, manufacturing, marketing, managerial, and financial resources. We show that targets and acquirers frequently redeploy resources following horizontal acquisitions, especially resources that frequently face market failure. We then show that the magnitude of redeployment of each type of resource increases with the asymmetry of the merging businesses' relative strength on the resource dimension. The research stresses evolutionary perspectives on business organizations that emphasize the importance of organizational differences in competitive markets. The central premise of our research is that the market for businesses is often more robust than the market for resources. © 1998 John Wiley & Sons, Ltd. Citing Literature Volume19, Issue7July 1998Pages 631-661 RelatedInformation