The Double Cases Study On Elements Of Acquisition Capability

The enterprise used M&A,the extraordinary development model to quickly enter the target market,gain competitive advantage,lay out of corporate strategy.But the failure rate of M&A is high.That enterprises make a blind acquisition because of lack of the understanding of their Acquisition Capability is an important reason for the failure of M&A.Therefore,the study of Acquisition Capability becomes a real problem.However,very little literature has focused on Acquisition Capability,especially lacks the study of structure factors.So,the research question in this paper is "what is the elements of Acquisition Capability".Based on the theoretical research of Acquisition Capability,this paper uses double cases and inductive research method to get the elements of Acquisition Capability and analyzes the constituent elements,studies the relationship between elements.China Communications Construction Company Limited acquired Fenghuang Island.China Minmetals Corporation acquired Las Bambas.The paper found that the elements of Acquisition Capability is decision-making capability,structure,process,learning,system,team.Second,Acquisition Capability provides an integrated perspective to analyze the reasons for driving M&A success,which may provide a better analytical perspective than a local perspective that emphasizes unilateral factors.Acquisition Capability is not only the ability to manage M&A transactions.But also,under the appropriate organizational structure and appropriate institution system,the decision-making team sets development strategy,makes a reasonable M&A decision,arranges the appropriate team to perform and the individual project experience of the M&A transaction should also be organized.The learning mechanism is refined into organizational capacity to guide future acquisitions.However,it should be noted that in practical applications should not be split into a fragment,they can be combined to show the whole picture of Acquisition Capability.In this paper,based on the "split" model,the decision-making capability is added,it makes combination of the other elements to show the overall picture of Acquisition Capability.To a certain extent,it enriched the theory.It is the initial study on acquisition capability.To expend and enrich the related theory,future studies could focus on the quantitative analysis and empirical research of corporate acquisition capability by the method of constructing model or index.