Stakeholder Orientation and Experiential Learning: Evidence from Corporate Acquisitions

This article examines how stakeholder orientation influences managers’ ability to learn from prior experience in corporate acquisitions. We argue that increased attention primary stakeholders’ signals affects both positively and negatively capacity analyze causal mechanisms past acquisitions, draw inferences them, apply these subsequent On the one hand, inputs may enhance interpret by giving voice unnoticed details of other it divert away inferential mechanisms, reinforce confidence existing practices, limit acquisitions experience. combine theoretical effects propose an inverted U-shaped influence on relationship between acquisition focal performance. also homogeneity proximity knowledge domain firm act as boundary conditions this influence. Analyses a sample 4619 504 US firms support our predictions.