Abstract
Acquisitions between firms can create value through learning between acquirer and target firm well transferring knowledge from on partner to the other well creating new knowledge. The success in these acquisitions relies on the integration process, achieving that the knowledge of both partners is retained in the combined firm and that new knowledge is created or transferred. The aim of this work is to demonstrate that knowledge is a source of value creation in acquisitions and to analyze how firms are integrated in order to achieve knowledge transfer or knowledge creation. Specifically, we analyze three key management choices of the integration process, the autonomy level, the level of socialization and the level of formalization. Through a study of 45 Spanish acquisitions we demonstrate that the transference and the generation of knowledge are source of value creation. We demonstrate that knowledge transfer between the partners demands an integrations process with low autonomy, high socialization and high formalization. We also demonstrate that integration process when the aim is to generate new knowledge and innovation relies on high socialization
