Clusters of Interdependent Routines: a Horizontal Perspective and Its Post-acquisition Transfer Implications

In high-velocity environments such as high-technology industries, firms often engage in acquisitions to gain access to new capabilities as sources of competitive advantage. Prior research has shown, however, that attempts at post-acquisition capability transfer tend to present formidable challenges. Based on an in-depth, longitudinal case study design, this research reveals that the success of post-acquisition capability transfer crucially depends on recognizing the importance of the clusters of interdependent routines—that is, deliberate learning mechanisms aimed at experience accumulation, articulation, and codification—that constitute the microfoundations of the capability in question. More specifically, these findings demonstrate that by having a horizontal perspective toward such deliberate learning mechanisms—and thus acknowledging their interdependencies—the importance of synthesizing a practice-based approach for sharing tacit knowledge and a routine-based approach for codifying knowledge becomes evident, when aiming for capability development. As a result, these findings illustrate that both practice-based and routine-based theories are necessary to explain post-acquisition capability transfer implications and, thus, enhance capability transfer.