Knowledge Management in Mergers and Acquisitions

This chapter stresses the importance of knowledge management for mergers and acquisitions (M&As), a popular strategy of survival and growth that is believed to enhance a firm’s competitive advantage over its rivals. Cross-border M&As is a widely used mode of market entry, which constitutes a large share of global FDI flows entry into a host country. While in the 21st century, managing knowledge is increasingly recognized as being a critical strategic task for an organization, the literature on knowledge management in M&A activity is relatively limited. Although M&As in many cases fail to deliver satisfactory results, knowledge management is a strategically important tool for M&As’ success. The chapter aims to elaborate the role of knowledge management in the M&A context, and to identify the factors that facilitate its implementation in M&As, suggesting that the effective implementation of knowledge management in an amalgamated firm can help explore and exploit knowledge in a post-M&A situation.