Kongpichayanond, Pimpimon. "Knowledge Management for Sustained Competitive Advantage in Mergers and Acquisitions. " Advances in Developing Human Resources. 11. 3 (2009): 375-387. Web. 27 Nov. 2011. <http://adh. sagepub. com/content/11/3/375>. According to the article the main reasons companies merge and acquire other companies is because they get “increasing market share, gaining an organization’s core capabilities, and gaining more capital, knowledge, expertise, and talent at lower costs. (Pimpimon, 2009, page 375)
However, the author suggests that there is more to mergers and acquisitions than just “emphasizing on business and financial issues. ” (Pimpimon, 2009, page 375) According to the author, knowledge management is important thru each step of mergers and acquisitions and impact their success. Kongpichayanond suggests that when merging or acquiring another company, there are both explicit and tacit knowledge received in the process. One type is tacit and the other is explicit.
The author points out that there is a non-decision making portion of that knowledge management. You can’t put a dollar value on tacit knowledge. Nor, can you put a dollar value to the depth of knowledge that is received from the acquisition or merger. Company A doesn’t have to relearn all of that. So they are forgin the time, and financial costs of learning knowledge. Years of service, etc.
Banal-Estanol, A. and Seldeslachts, J. (2011), Merger Failures. Journal of Economics & Management Strategy, 20: 589–624. oi: 10. 1111/j. 1530-9134. 2011. 00298. x Christensen, C. M. , et. al. , The New M&A Playbook. Harvard Business Review v. 89 no. 3 (March 2011) p. 48-57 Cigola. Margherita, and Modesti, Paola. Managerial Finance. Patrington: 2008. Vol. 34, Iss. 4; p. 221 Cumicek, C. Financing creatively. National Petroleum News v. 98 no. 7 (July 2006) p. 38-9 Davis, J. , et. al. , Low-Cost Multinational Acquisition Financing Using Collateralized Corporate Obligations. Journal of Private Equity v. 14 no. 4 (Fall 2011) p. 21-32