Effective Use of Information Systems/Technologies in the Mergers and Acquisitions Environment

Abstract

In this study, the authors examine the effects of information systems/technologies (IS/T) on the performance of firms engaged in growth strategies based on mergers and acquisitions (M&A). A model derived from a resource-based theory of the firm is developed to predict the influence of IS/T on performance of firms. Data on the financial performance of 133 firms are used to gauge the impact of IS/T on various M&A objectives. The results suggest that IS/Ts implement M&A objectives that seek to increase overall efficiency better than those that seek to introduce new products or efforts to increase sales. Future studies to examine the process of introducing new products from resource-based theory are suggested.