Abstract:
A firm's performance up to great extent relies on availability of resources, controlled by
different factors in the environment. Merger and acquisition is a way to manage these
resource dependencies. This paper presents an overview of the Merger and acquisition
which occurs due to resource problem.
This paper extends the resource dependence results to an intra-industry perspective. Due
to the main focus on inter-industry merger and acquisition patterns in prior researches,
the knowledge is very little in this field applied to explain horizontal type of merger and
acquisition patterns.
It shows that mergers and acquisitions among firms have tendency to take place with
technological and competitive dependence. This paper can discover the reasons behind
this type of mergers, as there are many factors affecting the performance of firms and
provide a chance to other firms to target it.
This paper analyzes the perception of different people belonging to different fields of
work and interprets their point of views through questionnaires. The paper clearly shows
the mergers and acquisitions among pharmaceutical firms to get the technological
advancement, competitive edge against competitors and to get the advantage of R&D
from the target firm as it is very necessary for a pharmaceutical firm to have advance
knowledge about the medicines and biotech.
This paper shows the likelihood of a resource dependence reducing acquisition is
moderated by the crowding of firms’ alliances and technological positions. Acquisition is
one way to reduce the resource dependence and get the technological advantage, benefit
of R&D and a competitive edge to compete in the market.
