University of Oulu

Lauri Haapanen, Pia Hurmelinna-Laukkanen, Sakari Nikkilä, Pertti Paakkolanvaara, The function-specific microfoundations of dynamic capabilities in cross-border mergers and acquisitions, International Business Review, Volume 28, Issue 4, 2019, Pages 766-784, ISSN 0969-5931,

The function-specific microfoundations of dynamic capabilities in cross-border mergers and acquisitions

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Author: Haapanen, Lauri1; Hurmelinna-Laukkanen, Pia1; Nikkilä, Sakari1;
Organizations: 1University of Oulu, Oulu Business School, P.O. Box 4600, FI-90014 Oulu, Finland
Format: article
Version: accepted version
Access: open
Online Access: PDF Full Text (PDF, 1.1 MB)
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Language: English
Published: Elsevier, 2019
Publish Date: 2022-04-16


In mergers and acquisitions, the acquiring firm must combine two firms’ resources and capabilities so that the outcome yields value. In individual firms, the marketing & sales, and R&D functions have typically developed intertwined and complex relationships over time. These multifaceted dependencies may obscure the integration of the firms and their functions. In order to reveal to what extent cross-functional relationships determine the success or failure of an acquisitions, we have made one of the first attempts to study merging firms’ function-specific capabilities, underlying microfoundations, and their cross-functional relationships during the integration process—instead of focusing on acquisition capabilities as such. We use longitudinal data from two cross-border acquisitions between US and Finnish SMEs. Our results indicate that major differences between merging firms’ cross-functional microfoundations—that is, their structures, processes, routines, and skills—might either enforce or erode the seemingly promising synergies at the product and market levels, depending on managerial awareness of their nature.

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Series: International business review
ISSN: 0969-5931
ISSN-E: 1873-6149
ISSN-L: 0969-5931
Volume: 28
Pages: 766 - 784
DOI: 10.1016/j.ibusrev.2019.03.002
Type of Publication: A1 Journal article – refereed
Field of Science: 512 Business and management
Copyright information: © 2019 Elsevier Ltd. All rights reserved. This manuscript version is made available under the CC-BY-NC-ND 4.0 license