Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/327054 
Year of Publication: 
2025
Citation: 
[Journal:] BRQ Business Research Quarterly [ISSN:] 2340-9444 [Volume:] 28 [Issue:] 1 [Year:] 2025 [Pages:] 2-14
Publisher: 
Sage Publishing, London
Abstract: 
Motivated by the resource-based view (RBV) of the firm, this study explores whether mergers and acquisitions (M&As) can facilitate or impede a firm's marketing capabilities. Furthermore, this study also examines whether the influence of M&As on a firm's marketing capabilities is conditional to the type of deals, that is, domestic versus cross-border acquisitions. Using the difference-in-differences research design with a large sample of 15,509 firm-year observations for 898 US public acquirers, this study tests the postacquisition changes in a firm's marketing capabilities as reflected in the sensitivity of sales revenue to marketing-related expenditure. The results of the empirical tests show a postacquisition increase in sales sensitivity, suggesting that firms can enhance their marketing capabilities through M&As. However, it is also found that the enhancement in marketing capabilities is limited to domestic M&As and disappears for cross-border acquisitions. This result suggests that more salient differences in a firm's marketing environment attributable to cross-border acquisitions may disrupt a firm's marketing capabilities and dampen the positive effect of M&As.
Subjects: 
Marketing capabilities
mergers and acquisitions
sales sensitivity
JEL: 
G34
L25
M30
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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