Organizational learning and acquirer performance: How do serial acquirers learn from acquisition experience?

How do serial acquirers learn from acquisition experience has been a prominent issue in the field of acquisition. However, the empirical findings about performance implications of acquisition experience have still been mixed. Drawing on the organizational learning theory, this study analyzes the influence of the quality, the pattern, and the context of acquisition experience on acquirer performance. Using a sample of 2223 firm-year observations gauged from 11,571 acquisitions conducted by 889 listed firms in the United States during the 2001-2014 period, this paper finds that (1) the portion of related acquisition experience has a non-significant effect on acquirer performance; (2) the relationship between the velocity of acquisition experience and acquirer performance is an inverted-U shape; (3) Target product-market scope positively moderates the relationship between the portion of related acquisition experience and acquirer performance; and (4) Target product-market scope positively moderates the relationship between the velocity of acquisition experience and acquirer performance. These findings echo an acquisition program view and suggest that a pro-active, plan-ahead acquisition trajectory benefits acquirer performance.