Keywords: corporate acquisitions, resources, production competence, organisational capability, information technology, Mitsubishi Electric, Apricot Computers
Building production competence and enhancing organisational capabilities through acquisition: the case of Mitsubishi Electric
Corporate acquisitions can provide an effective mechanism for maintaining growth in conditions of technological uncertainty, but typically suffer very high failure rates. This paper presents a resource-based framework for analysing corporate acquisitions in times of rapid technological change. The paper discusses how such acquisitions can be used to access resources that are of immediate use, but also enhance the acquirer's ability to access resources in the future. The acquisition of Apricot Computer in the UK by Japan's Mitsubishi Electric in 1990 is used as an illustrative case.