Why the whole is less than the sum of its parts: Examining knowledge management in acquisitions

This paper seeks to explain why an acquiring organization was unable to leverage the expertise of the acquired organization even though both organizations were highly successful in their own right prior to the acquisition. It offers a knowledge-based perspective by teasing out the essential knowledge attributes pertinent to acquisitions. The research was carried out using an interpretative case study methodology at a Singapore-based multinational organization in the semi-conductor industry. The main data collection method used was face-to-face interviews with some 28 staff from October 2006 to December 2006, almost 2 years after the acquisition exercise. The findings suggest that the lackluster outcome could be traced to three knowledge attributes, namely, accessibility, applicability and cumulativeness. In conclusion, a number of practical and research implications are highlighted.