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Whereas status breeds competence-based trust between acquirer and acquired unit, similarity is conducive to benevolence-based trust.
This paper explores overlapping competence-creating activities within the boundaries of the multinational corporation by investigating how foreign greenfield subsidiaries' technological evolution is affected by the addition of an acquired unit in the same location.
In her 30s, for instance, after working at Kraft's core Jell-O business, she transferred to a newly acquired unit that had just 25 employees and "no infrastructure" and was then a little-known brand.
This rarely works, and combined with the higher operating costs of acquired unit, the buyer then finds itself in the unenviable situation of shutting down the unit or scaling back… effectively wasting the money it spent on the deal.
P.R. and T.M. acquired unit cost data.
Furthermore, higher status position of acquirer is shown to have significant effect on acquired unit members' social preferences toward the former (Study1).
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It has already acquired units in Southend, Gravesend, Milton Keynes, Luton, Oxford and Peterborough.
But strength in educational publishing is expected to help Pearson increase overall earnings, excluding good will amortization, impairment and costs to integrate acquired units, to 30 pence (47 cents) a share, compared with 21.4 pence a share last year, the company said.
"Does this apply only to sponsors or does it also apply to holders of unsold shares?" he said, referring to those who acquired units from the sponsors for investment purposes.
This particularly applies to acquired units that are integrated and lose their independence and individual visibility.
In a modular structure, acquired units take on different functions than internally developed units and, as Karim (2006) finds, acquired units are more often reconfigured than internally grown ones, and can function as a source of value to the acquiring firms.
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CEO of Professional Science Editing for Scientists @ prosciediting.com