ROLE OF KNOWLEDGE TRANSFER IN ENHANCING FINANCIAL PERFORMANCE DURING MERGERS & ACQUISITION

Abstract

M&As are essential components of strategic management since they provide firms with opportunities for increased market share, decreased competition, and new technologies. There are several factors that determine the success of M&As and one of them is knowledge transfer. This paper aims at discussing how knowledge transfer can be used in order to improve financial performance in context of M&As. It explores both the conscious and unconscious knowledge sharing and provides tactics for pre-acquisition planning and post-acquisition implementation to maximize organizational compatibility. In particular, the role of leadership, strategic planning, and technological tools are highlighted as the key mediators of effective knowledge transfer. However, it also demonstrates how efficient and proper knowledge sharing can enhance operational processes and positively impact overall financial performance. Some of the challenges affecting knowledge transfer are highlighted below: Culture, Organization, and Technology. These issues can hence be meaningfully addressed to improve post-merger performance within organizations. Finally, the paper provides some suggestions and proposes potential research streams for enhancing cross-cultural knowledge sharing and technology adoption in M&As.