{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,2,7]],"date-time":"2026-02-07T10:52:22Z","timestamp":1770461542586,"version":"3.49.0"},"reference-count":52,"publisher":"MIS Quarterly","issue":"2","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"published-print":{"date-parts":[[2022,6,1]]},"abstract":"<jats:p>This paper examines the relationship between enterprise systems (ES) and the likelihood of mergers and acquisitions (M&amp;A). The key argument is that since ES can reduce agency costs associated with internal coordination and the transaction cost of coordinating with external partners, ES may be related to the likelihood of M&amp;A. Using a sample of 3,289 firms headquartered in North America from 2010 to 2018 that made 8,373 M&amp;A deals, the empirical analysis suggests that ES are positively related to horizontal acquisitions and negatively related to conglomerate acquisitions. However, as internal coordination costs increase, ES are becoming associated with more conglomerate M&amp;A, especially when the goal is to introduce new products and enter new markets. Also, in contexts where partners require transaction-specific investments, ES are associated with a relative decrease in the number of horizontal and vertical M&amp;A. These findings suggest that ES create options for managers to engage in ownership as well as information-based coordination, depending on the internal and external coordination costs as well as the goals of the organization.<\/jats:p>","DOI":"10.25300\/misq\/2022\/15631","type":"journal-article","created":{"date-parts":[[2022,10,17]],"date-time":"2022-10-17T15:07:26Z","timestamp":1666019246000},"page":"1227-1242","source":"Crossref","is-referenced-by-count":15,"title":["Enterprise Systems and the Likelihood of Horizontal, Vertical, and Conglomerate Mergers and Acquisitions"],"prefix":"10.25300","volume":"46","author":[{"given":"Chengxin","family":"Cao","sequence":"first","affiliation":[{"name":"Zicklin School of Business, Baruch College New York, NY, U.S.A."}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Gautam","family":"Ray","sequence":"additional","affiliation":[{"name":"Carlson School of Management, University of Minnesota, Minneapolis, MN, U.S.A."}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Mani","family":"Subramani","sequence":"additional","affiliation":[{"name":"Carlson School of Management, University of Minnesota, Minneapolis, MN, U.S.A."}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Alok","family":"Gupta","sequence":"additional","affiliation":[{"name":"Carlson School of Management, University of Minnesota, Minneapolis, MN, U.S.A."}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"10933","published-online":{"date-parts":[[2022,6,1]]},"reference":[{"key":"2025082212262100400_b1-18_15631_rn_cao","doi-asserted-by":"crossref","first-page":"2791","DOI":"10.1111\/0022-1082.00307","article-title":"Corporate equity ownership, strategic alliances, and product market relationships","volume":"55","author":"Allen","year":"2000","journal-title":"Journal of Finance"},{"issue":"2","key":"2025082212262100400_b2-18_15631_rn_cao","doi-asserted-by":"crossref","first-page":"103","DOI":"10.1257\/jep.15.2.103","article-title":"New evidence and perspectives on mergers","volume":"15","author":"Andrade","year":"2001","journal-title":"Journal Of Economic Perspectives"},{"issue":"1","key":"2025082212262100400_b3-18_15631_rn_cao","doi-asserted-by":"crossref","first-page":"25","DOI":"10.25300\/MISQ\/2018\/13245","article-title":"Impact of information technology infrastructure flexibility on mergers and acquisitions","volume":"42","author":"Benitez","year":"2018","journal-title":"MIS Quarterly"},{"issue":"3","key":"2025082212262100400_b4-18_15631_rn_cao","doi-asserted-by":"crossref","first-page":"551","DOI":"10.1287\/orsc.2016.1046","article-title":"Routines as shock absorbers during organizational transformation: integration, control, and NASA\u2019s enterprise information system","volume":"27","author":"Berente","year":"2016","journal-title":"Organization Science"},{"issue":"1","key":"2025082212262100400_b5-18_15631_rn_cao","doi-asserted-by":"crossref","first-page":"87","DOI":"10.1287\/orsc.9.1.87","article-title":"Portfolio restructuring and limits to hierarchical governance: the effects of environmental uncertainty and diversification strategy","volume":"9","author":"Bergh","year":"1998","journal-title":"Organization Science"},{"key":"2025082212262100400_b6-18_15631_rn_cao","first-page":"48","article-title":"Does M&A pay? 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