Dynamic capabilities: Their effect on performance mediated by product integration in the highly acquisitive software industry

Abstract

Building on behavioural theory employing dynamic capabilities, this paper examines how firms create competitive advantage through innovation over time after multiple mergers and acquisitions. Mergers and acquisitions are a way to acquire gaps and prominently missing features and functions; the firm then has only to assimilate them into their portfolio. This research is focused on the acquirer’s ability towards obtaining performance from product integration and is set within the context of highly acquisitive software-houses; those organisations involved in the sales and manufacture of business software products. The ability to realign and innovate this will increase performance over the long term.