Acquisition decision-making processes: The central role of risk

Journal Article (Journal Article)

This paper builds upon the work of organizational and strategic management scholars who have conceptualized acquisitions as decision-making processes. We suggest that behavioral concepts of risk, specifically decision-maker risk perceptions and propensities, are key to understanding the process by which acquisition candidates are selected, the characteristics of pre-acquisition evaluation and negotiations, and approaches to post-acquisition integration. By drawing upon past work concerning the effects of these risk-related variables in other decision-making contexts, we develop propositions that conceptualize their impact on acquisition decision processes. Incorporation of risk as a key variable in process theories of acquisitions provides a stronger theoretical grounding for these theories, and suggests some important practical implications for managers. © 1996 JAI Press Inc. All rights of reproduction in any form reserved.

Full Text

Duke Authors

Cited Authors

  • Pablo, AL; Sitkin, SB; Jemison, DB

Published Date

  • December 1, 1996

Published In

Volume / Issue

  • 22 / 5

Start / End Page

  • 723 - 746

International Standard Serial Number (ISSN)

  • 0149-2063

Digital Object Identifier (DOI)

  • 10.1016/S0149-2063(96)90020-3

Citation Source

  • Scopus