Jose Benitez - Amado University of Granada Granada , Spain

Though mergers and acquisitions (M&A) are a common strategy to reduce costs and pursue growth, the variance in returns from M&A is very high. This research explores how information technology (IT) affects firms’ ability to sense and seize M&A opportunities and assimilate acquisitions. Using a combination of secondary as well as matched-pair survey data from 100 mid-size Spanish firms, the empirical analysis suggests that through the development of business flexibility and IT integration capability, a flexible IT infrastructure enables firms to pursue M&A opportunities and facilitates the integration of IT and business resources of the merged firm, to help realize the economic benefits of M&A activities.