Rogan & Sorenson (2014)

Question 1

the effects of indirect ties (common clients) on acquirers’ choices of partners for mergers and acquisitions and on the performance of the combined organizations

Answer 1

The probability of being acquired rose but the performance of merged entities declined—both by losing clients and by selling less to the clients retained—with the number of common clients connecting the target to the acquirer

Question 2

Exposure does what

Answer 2

Exposure introduces a positive bias into acquirers’ perceptions of potential partners or restricts the set of targets considered to those less complementary to the acquirer, it will lead to poor interorganizational combinations.
- Due too, cognitive overlook, belief of sufficient insight thus no due diligence, loss during integration or after.

Question 3

Hypotheses:

Answer 3

H1 (SUP): The more third-party connections, the more likely of acquitting the target
H2 (SUP): Physical distances increases the above relationship
H3 (SUP): More third-party connections have negative effect on post-merger performance