Competitive or Complementary? Exploration, Exploitation and Acquisitions in the Taiwanese Electronic Industry

2011 ◽  
Vol 403-408 ◽  
pp. 5260-5264
Author(s):  
Liang Hung Lin ◽  
Yu Ling Ho ◽  
Wei Hsin Lin
Keyword(s):  
Mergers And Acquisitions ◽  
Rational Choice ◽  
Corporate Strategy ◽  
High Tech ◽  
Exploration And Exploitation ◽  
Electronic Industry ◽  
Central Concern ◽  
Exploration Exploitation

The central concern of corporate strategy for high-tech firms has focused on the rational choice and appropriate balance between exploration and exploitation. This study applies the exploration vs. exploitation construct to examine (1) how different strategies affect exploration and exploitation when firms undertake mergers and acquisitions (M&As), and (2) how ambidextrous design alters associated results. This investigation of Taiwanese electronic and computer firms reveals that M&A strategy, structure and suited matches are decisive factors, and ambidextrous design is useful for simultaneously pursuing both activities.

Exploration and exploitation in mergers and acquisitions

2014 ◽  
Vol 22 (1) ◽  
pp. 30-47 ◽  
Author(s):  
Liang-Hung Lin
Keyword(s):  
Integrated Circuits ◽  
Mergers And Acquisitions ◽  
Corporate Strategy ◽  
Credit Rating ◽  
Information Service ◽  
Exploration And Exploitation ◽  
Acquisition Performance ◽  
Content Type ◽  
Acquisition Integration ◽  
Exploitation And Exploration

Purpose – The central concern of organizational learning and corporate strategy has, in recent decades, focused on the rational choice and appropriate balance between exploration and exploitation. Dividing mergers and acquisitions (M&As) into related and unrelated M&As, this study applies the exploration vs exploitation construct to examine how different M&A strategies affect exploration and exploitation of the combined firm, how post-acquisition integration affects exploration and exploitation of the combined firm, and how organizational ambidexterity affects post-acquisition performance. The paper aims to discuss these issues. Design/methodology/approach – Organizational and industry level data were drawn from the top 1,000 Taiwanese electronic and computer firms reported by 2009 China Credit Information Service, an authorized credit-rating company in Taiwan. The companies are classified into four industries: computer and associated equipments manufacturing (SICs 271x, 274x, 276x); integrated circuits (SIC 261x), opto-electronics and telecommunication (SICs 264x, 272x, 277x) and electronic components (SICs 262x, 263x, 264x, 269x, 275x). Questionnaires were distributed to general managers of the top 1,000 electronics companies. Findings – This investigation of Taiwanese electronic and computer firms revealed that related acquisitions with high degrees of acquisition integration positively affect the combined firm's exploitation; unrelated acquisitions with high degrees of R&D expenditure and acquisition experience positively affect the combined firm's exploration. The firm's ability of simultaneously pursuing exploitation and exploration positively affects its post-acquisition performance. Originality/value – The contribution of this study is to understand how acquisitions influence exploitation and exploration. With regard to the relationship between acquisition and exploitation/exploration, this study finds that unrelated acquisitions enhance exploration, whereas related acquisitions enhance exploitation.

scholarly journals A STUDY ON THE MAGNITUDE OF HUMAN RESOURCE IN SUN AND RANBAXY MERGER

2016 ◽  
Vol 10 (1) ◽  
pp. 29
Author(s):  
S Anjalidaisy ◽  
C Vijayabanu
Keyword(s):  
Mergers And Acquisitions ◽  
Product Development ◽  
Change Management ◽  
Employee Engagement ◽  
Human Resource ◽  
Generic Drug ◽  
Corporate Strategy ◽  
Drug Market ◽  
Pharmaceutical Sector ◽  
A Company

ABSTRACTSun Pharmaceutical is a trailblazer in Indian pharmaceutical sector, and one of the foremost competitors in the generic drug market sets its eye onRanbaxy. Sun pharmacy which was established in 1983 listed from 1994 has its upper hand in product development. Ranbaxy was incorporated in1973, and Daiichi Sankyo, a Japanese firm, got a controlling share from 2008. This amalgamation between Sun Pharmacy and Ranbaxy would getprofitable transaction for the former. The process of the coalition was a cloak and dagger affair until April 6, 2014. Before mergers and acquisitions,a company has to create an urgency call among the employees which will result in better understanding of the whole scenario. The aspects are abouthow financial motives and non-financial motives play a major role in mergers. This case deals with the human resource issues and complexities facedby the two players in the same business.Keywords: Merger, Acquisition, Change management, Human resource, Employee engagement, Corporate strategy.

scholarly journals Understanding Managers’ Trade-Offs Between Exploration and Exploitation

2021 ◽  
Author(s):  
Alina Ferecatu ◽  
Arnaud De Bruyn
Keyword(s):  
Learning Model ◽  
Decision Makers ◽  
Exploration And Exploitation ◽  
Trade Offs ◽  
Exploration Exploitation

This paper develops a learning model to describe decision makers' exploration/exploitation trade-offs and their link to psychometric traits.

scholarly journals Systematic Exploration and Uncertainty Dominate Young Children’s Choices

2019 ◽  
Author(s):  
Nathaniel J. Blanco ◽  
Vladimir Sloutsky
Keyword(s):  
Decision Making ◽  
Young Children ◽  
Cognitive Control ◽  
Exploration And Exploitation ◽  
Top Down ◽  
Reward Seeking ◽  
Systematic Fashion ◽  
Systematic Exploration ◽  
Competing Demands ◽  
Exploration Exploitation

Organisms need to constantly balance the competing demands of gathering information and using previously acquired information to obtain rewarding outcomes (i.e., the “exploration- exploitation” dilemma). Exploration is critical to obtain information to discover how the world works, which should be particularly important for young children. While studies have shown that young children explore in response to surprising events, little is known about how they balance exploration and exploitation across multiple decisions or about how this process changes with development. In this study we compare decision-making patterns of children and adults and evaluate the relative influences of reward-seeking, random exploration, and systematic switching (which approximates uncertainty-directed exploration). In a second experiment we directly test the effect of uncertainty on children’s choices. Influential models of decision-making generally describe systematic exploration as a computationally refined capacity that relies on top-down cognitive control. We demonstrate that (1) systematic patterns dominate young children’s behavior (facilitating exploration), despite protracted development of cognitive control, and (2) that uncertainty plays a major, but complicated, role in determining children’s choices. We conclude that while young children’s immature top-down control should hinder adult-like systematic exploration, other mechanisms may pick up the slack, facilitating broad information gathering in a systematic fashion to build a foundation of knowledge for use later in life.

EXPLORATION AND EXPLOITATION: A 20-YEAR REVIEW OF EVOLUTION AND RECONCEPTUALISATION

2015 ◽  
Vol 19 (01) ◽  
pp. 1550008 ◽  
Author(s):  
RANGGA ALMAHENDRA ◽  
BJÖRN AMBOS
Keyword(s):  
Organizational Learning ◽  
Learning Organization ◽  
Turning Point ◽  
Added Value ◽  
Exploration And Exploitation ◽  
Structural Pattern ◽  
Fine Grained ◽  
Organization Science ◽  
Exploration Exploitation ◽  
Leading Journals

The exploration–exploitation tension has been resonated and applied in diverse areas of management research. Its applications have deviated substantially from the scope of organisational learning as originally proposed by March [(1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 71–87]. Scholars have developed set of definitions, new conceptualisations, and varied applications in rejuvenating the concept; and literatures on this topic seem do not significantly ensure a conclusive picture. It is still also unclear what are the antecedents and following scientific breakthroughs which may have led to the divergence of this construct. This study offers an added value as it becomes the first to apply a bibliometric analysis, combined with fine-grained content analysis to attain a more comprehensive understanding on how the construct of exploration–exploitation have grown and evolved during the last 20 years. We attempt to grasp the structural pattern of citing behaviour and collective understanding among scholars, through conducting in-depth bibliographic review in a complete population of articles on this topic, published in leading journals following March [(1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 71–87]. This study identifies the intellectual base articles which form the basis of the exploration–exploitation and the turning point articles that shift the discussion into different directions.

Impact of Financial Risk Ratios on Profitability of Multinational vs. Domestic Pharmaceuticals in India

2014 ◽  
Vol 3 (2) ◽  
pp. 54-68
Author(s):  
Kaushik Chakraborty
Keyword(s):  
Pharmaceutical Industry ◽  
Strong Evidence ◽  
Corporate Strategy ◽  
Business Environment ◽  
Multinational Companies ◽  
High Tech ◽  
Financial Leverage ◽  
The Relationship ◽  
Domestic Companies ◽  
Indian Pharmaceutical Industry

The impact of financial leverage on the profitability position of the business firms under different financing alternatives and with varying levels of overall profitability is one of the most crucial issues in modern finance to sustain continuous improvement in financial performance. In fact, framing an appropriate capital structure with flexible equity and disciplined debt financing is an integral part of the entire corporate strategy to gain shareholder confidence and stakeholder support to achieve long run sustainability. No firm can ignore this aspect in the context of today's high-tech competitive business environment. Unfortunately this issue has not been addressed with due importance in India and in particular, no significant study exists on the pharmaceutical sector comparing the linkage between financial leverage and profitability of multinational companies with that of the domestic companies. The pharmaceutical industry is acknowledged as one of the most promising industries in India; therefore this study should make a significant contribution to the practice. This paper examines the relationship between financial leverage and profitability of the Indian pharmaceutical industry during the period of March 2002 to December 2011 (N=20). The researcher compared the relationship between financial leverage and profitability of multinational companies with that of the domestic companies in the Indian pharmaceutical industry. The research found strong evidence of the negative contribution of financial leverage towards improving profitability for multinational and domestic firms. Hence, these results provide strong evidence of positive contribution of financial leverage towards improving profitability in a substantial portion of the sample companies during the study period.

Industrial Restructuring and the Spatial Division of Labor: The Case of the Seoul Metropolitan Region, the Republic of Korea

1993 ◽  
Vol 25 (1) ◽  
pp. 81-93 ◽  
Author(s):  
S O Park
Keyword(s):  
Division Of Labor ◽  
Industrial Development ◽  
Corporate Strategy ◽  
Spatial Separation ◽  
Metropolitan Region ◽  
Industrial Restructuring ◽  
High Tech ◽  
Regional Characteristics ◽  
Seoul Metropolitan Region

This paper is an overview of an industrial restructuring and spatial division of labor in the Seoul metropolitan region, with a focus on the role of the Korean government, corporate strategy, and regional characteristics in controlling labor and capital. The spatial division of labor that appeared in the 1970s was related mainly to the Korean government's promotion of the rise of large enterprises to institutionalize heavy and chemical industrial development. Since the 1980s, in addition to the role of the state, corporate strategy and regional characteristics have been regarded as important factors for understanding the undergoing industrial restructuring. Concentration and development of high-tech industries in the Seoul metropolitan region during the 1980s have progressed with evolving intensified spatial division of labor beyond the spatial separation of headquarters and production units. The evolution of intensified spatial division of labor is the result of corporate strategy which regionally separates technical workers from production workers on the one hand, and corporate strategy in utilizing regional characteristics from the government's decentralization policy on the other hand.

Mergers and acquisitions in the hightech industry: a literature review

2013 ◽  
Vol 21 (1) ◽  
pp. 66-82 ◽  
Author(s):  
Matteo Rossi ◽  
Shlomo Yedidia Tarba ◽  
Amos Raviv
Keyword(s):  
Literature Review ◽  
Mergers And Acquisitions ◽  
Value Creation ◽  
Design Methodology ◽  
Business Development ◽  
Critical Examination ◽  
High Tech ◽  
Review Of Literature ◽  
Content Type ◽  
Start Ups

PurposeAs a result of the impressive wave of mergers and acquisitions (M&As) in recent years, operations that were traditionally considered to be extraordinary have become common business development options. M&As have produced mixed results for their stakeholders, which resulted in extensive economics debate, albeit without a systemic vision. As a result, the M&A literature has not yet developed a paradigm and the purpose of this paper is to present a review of the existing literature.Design/methodology/approachThe authors carried out a review of literature on M&As in technology‐driven sectors.FindingsThe critical examination of the innovation and value creation processes in M&As in hightech industry provides new insights for incumbent executives and can better plan and implement M&As deals.Originality/valueSince 1990 there has been a major expansion of M&As in high‐tech sectors, many involving the acquisition of small and young start‐ups. To address this important topic the authors present here a review of literature on M&As in technology‐driven sectors.

Sign in / Sign up

Export Citation Format

Share Document