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Manifestations of Higher-Order Routines: The Underlying Mechanisms of Deliberate Learning in the Context of Postacquisition Integration

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TLDR
It is argued that experience codification gives rise to inertial forces that hamper the customization of routines to any given acquisition, and that successful acquirers develop higher-order routines that prevent the generalization of inapplicable ('zero-order') codified routines.
Abstract
Building on the codification and dynamic capabilities literatures, we pursue deeper insight into the underlying mechanisms of deliberate learning in the context of postacquisition integration. We argue that experience codification gives rise to inertial forces that hamper the customization of routines to any given acquisition. We theorize, therefore, that successful acquirers develop higher-order routines-as manifested in two complementary sets of concrete organizational practices-that prevent the generalization of inapplicable ('zero-order') codified routines. After drawing on in-depth qualitative data to help build our theoretical argument, we test it formally with unique survey data on 85 active acquirers.

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References
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Organizational fit and acquisition performance: Effects of post-acquisition integration

TL;DR: The findings indicate that differences in top management styles have a negative impact on performance in acquisitions characterized by both high and low levels of post-acquisition integration, but no such relationship was observed between differences in the reward and evaluation systems and post- Acquisitions performance in either the high or low integration subgroups.
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