Laurence Capron

INSEAD | INSEAD · Area of Strategy

We argue that we can reach a better understanding of the relationships between firm resources and competitive advantage by considering actions that firms take against their rivals' resources in factor markets and political markets. We outline market and firm characteristics that facilitate the deployment of competitors' resource-oriented strategi...

The dynamic capabilities literature suggests that firms need to use both internal development and external sourcing in order to thrive over time, but we have a limited understanding of the conditions that best suit different sourcing choices. This study examines how constraints that arise from firms' existing stocks of capabilities and from their i...

We examine the characteristics of national systems of corporate governance to theorize about the nature of the shareholders' and employees' interests when it comes to reorganization, under the assumption that the firm is coalitional in nature. We argue that corporate governance institutions prevalent in both the host and the target country of the m...

This paper examines how value is created in horizontal mergers and acquisitions. More specifically, it examines the impact of post-acquisition asset divestiture and resource redeployment on the long-term performance of horizontal acquisitions. The data come from a detailed survey of acquiring firm managers and cover 253 horizontal mergers and acqui...

Business acquisition, resource redeployment, and asset divestiture are elements of a dynamic process in which firms change their businesses by recombining internal and external resources. Analyzing 253 horizontal acquisitions, we show that post-acquisition resource redeployment leads to asset divestiture from the business that receives the redeploy...

Facing constant pressures to grow, established firms increasingly harness external innovation by collaborating with and eventually acquiring startups. To succeed in their exit through acquisition, startup firms and incumbents have to master three steps (the “3 Cs”) that enhance the co-specialization with the acquirer: establishing the Complementari...

Research Summary We apply pattern‐matching techniques to contrast qualitative case study data with perspectives from strategic management and institutional economics about how a firm can address voids in market‐based institutions. We identify a novel approach whereby the firm builds an open institutional infrastructure (OII) by investing in a pool...

This article discusses post-merger integration (PMI) and the trade-off between the economic benefits and costs that arise when organizations merge under a new organizational structure and reconfigure their businesses and resources. To reconfiguration scholars, PMI is a crucial tool for firms to reconfigure resources, product lines, and business uni...

Classical approaches to strategy are built around two dominant pillars to explain firm performance: industry structure and firm strategy and capabilities. Firm performance is typically seen as a result of a “fit,” or complementarity, between industry structure and firm strategic choices. We supplement the classical model of strategy with a third pi...

Acquisitions are among the most powerful tools for achieving corporate growth. Carried out well, acquisitions can provide a strong platform for growth and survival. Carried out badly, acquisitions lead to quick decline and failure. It is therefore crucial to examine when acquisitions constitute the right tool to execute firm’s growth strategy and h...

This paper examines the conditions under which an acquisition makes sense compared with alternative modes of resource-sourcing such as internal development, licensing and alliances. Drawing on the transaction costs economics and capability views, it presents governance and knowledge reasons for choosing an acquisition over alternative modes of sour...

It is now well established in the Strategy literature that firms grow successfully and survive if they are able to alter their resource base on an ongoing basis (Teece, 2007; Helfat, Finkelstein, Mitchell, Peteraf, Teece and Winter, 2007; Eisenhardt and Martin, 2000; Capron and Mitchell, 2009; Helfat and Peteraf, 2014). In examining the challenges...

We investigate how state capacity—the administrative ability to formulate and implement policy—affects the institutional adoption of new policies and the decoupling of those policies from their original purpose in the face of pressures from professions, multilateral agencies, and imitation among countries. We expect state capacity to reduce the eff...

Acquisitions are among the most powerful tools for achieving corporate growth. Carried out well, acquisitions can provide a strong platform for growth and survival. Carried out badly, acquisitions lead to quick decline and failure. It is therefore crucial to examine when acquisitions constitute the right tool to execute firm’s growth strategy and h...

We investigate how state capacity—the administrative ability to formulate and implement policy—affects the institutional adoption of new policies and the decoupling of those policies from their original purpose in the face of pressures from professions, multilateral agencies, and imitation among countries. We expect state capacity to reduce the eff...

The acquisition of privately held firms is a prevalent phenomenon that has received little attention in mergers and acquisitions research. In this study, we examine three questions: (1) What drives the acquirer's choice between public and private targets? (2) Do acquisitions of private targets elicit a more positive stock market reaction than acqui...

In this study, we draw on the resource-based view of the firm and on value-based models of strategy to examine when firms appropriate value from their superior resources. We argue for the need to take into account the role of the resource gap between competitors rather than the absolute resource stock of the focal firm when examining the resource...

We are making available to all scholars a new dataset on legal protections of minority shareholder rights with repeated annual measures between 1970 and 2011 for 78 countries. Our measure synthesizes 10 different legal provisions contained in national legislation. The data can be used to analyze research topics regarding corporate governance, finan...

Our research examines how standalone firms can build their capabilities in environments characterized by weak market-supporting institutions. With a longitudinal, inductive, comparative case study of two Brazilian cosmetics firms, we examine the developmental processes of core capabilities- product development and distribution- between 1990 and 201...

We examine whether ex post domestic productivity gains accrue to firms making cross-border acquisitions. We argue that cross-border acquisitions can enhance the acquirers’ productivity at home, and we posit that these domestic productivity gains will be greater when there are learning opportunities in the target’s host country and when contemporane...

We examine whether ex post domestic productivity gains accrue to firms making crossborder acquisitions. We argue that cross-border acquisitions can enhance the acquirers’ productivity at home, and we posit that these domestic productivity gains will be greater when there are learning opportunities in the target’s host country and when contemporaneo...

An emerging stream of literature has started to question whether specializing in one specific type of corporate development is the most effective strategy, stressing the tension between specializing in one type of corporate development mode versus pursuing a mixture of corporate development deals (Schilling and al., 2003). Over time, organizations...

As interest rises in the effect of the institutional environment on firms’ strategy in emerging markets, scholars argue that firms cannot develop a leading market position without addressing the institutional ‘voids’ (Khanna and Palepu, 2010) or ‘idiosyncrasies’ (Henisz, 2003) that make emerging markets challenging to operate in. In this study, we...

Purpose This paper aims to present a case study of Cisco's corporate development approach which shows how the company built a powerful new business capability: the discipline of selecting the best pathways – build, borrow or buy – to follow when pursuing growth opportunities. Design/methodology/approach In order for companies to achieve viable gro...

In this study, we draw on the resource-based view of the firm and on value-based models of strategy to examine when firms appropriate value from their superior resources. We argue for the need to take into account the role of the resource gap between competitors rather than the absolute resource stock of the focal firm when examining the resource-p...

In addition to occasional autoimmune hemolytic anemia, unexplained iron-deficiency anemia has been reported in childhood Castleman disease (CD). The recent discovery of hepcidin has regenerated the research on iron metabolism. This hormone is a key regulator of iron homeostasis, mainly by inhibiting intestinal iron absorption. Liver expression of h...

Hypo-uricemia is still considered as a hallmark of the syndrome of inappropriate secretion of antidiuretic hormone. We analyzed prospectively 98 hospitalized patients with hyponatremia (≤135 mmol/L), excluding those receiving diuretic treatment. Gold standard for the syndrome of inappropriate secretion of antidiuretic hormone combined plasma hypoos...

Iron deficiency is typically associated with microcytic anemia and thrombocytosis. It is a very uncommon cause of thrombocytopenia. A 17-year-old female presented with marked fatigue and dyspnea on exertion. Review of systems was only remarkable for abundant menstruations during the past two years. The hemogram revealed a profound microcytic anemia...

Erythrocyte sedimentation rate (ESR) and C-reactive protein (CRP) are frequently prescribed jointly. The usefulness of this practice is uncertain. All patients with ESR and CRP measured at the same time in an academic tertiary hospital during a 1-year period were included. Concomitant measures of serum creatinine, hematocrit, and anti-Xa activity w...

Executing a new strategy nearly always requires new resources and capabilities and most firms seek them out the wrong way. In a 10-year study of 162 telecom companies, the authors found that organizations deploying all the methods available to them outperform those that stick with a narrow approach. Yet most firms doggedly pursue one chief method,...

To assess the relevance of antibiotic combinations according to available recommendations. Prospective monocentric study of 12-month duration in the department of internal medicine of a teaching hospital. All antibiotic combinations were assessed taking into account the infection type, the involved bacteria, the antibiotic nature, dosage and durati...

We attempted to evaluate endothelial dysfunction and the role of AECAs in systemic lupus (SL) with low disease activity. We quantified endothelial microparticles (EMps) and attempted to find the best flow cytometry method for that purpose. CD105, CD144 and CD146 were tested, individually or in combination, on EMp-enriched plasma. Twenty-three healt...

Purpose Tuberculous paradoxical reactions (PR) have been seldom studied in non-immunocompromised patients. We conducted a study to describe the incidence, clinical and biological features, treatment and outcome of PR in human immunodeficiency virus (HIV)-negative patients treated for extrapulmonary tuberculosis (TB) and to identify predictive facto...

We examine the characteristics of national systems of corporate governance to theorize about the nature of the shareholders' and employees' interests when it comes to reorganization, under the assumption that the firm is coalitional in nature. We argue that corporate governance institutions prevalent in both the host and the target country of the m...

We examine the characteristics of national systems of corporate governance to theorize about the nature of the shareholders' and employees' interests when it comes to reorganization, under the assumption that the firm is coalitional in nature. We argue that corporate governance institutions prevalent in both the host and the target country of the m...

The dynamic capabilities literature suggests that firms need to use both internal development and external sourcing in order to thrive over time, but we have a limited understanding of the conditions that best suit different sourcing choices. This study examines how constraints that arise from firms' existing stocks of capabilities and from their i...

We examine whether pre-IPO affiliations affect post-IPO corporate events, namely acquisitions. On the one hand, newly public acquirers may benefit from their pre-IPO affiliations through residual signaling value or/and resource-related benefits. On the other hand, newly public acquirers may suffer from those affiliations when conflicts of interests...

We examine whether pre-IPO affiliations affect post-IPO corporate events, namely acquisitions. On the one hand, newly public acquirers may benefit from their pre-IPO affiliations through residual signaling value or/and resource-related benefits. On the other hand, newly-public acquirers may suffer from those affiliations when conflicts of interests...

This paper explores whether firms make better governance choices as they gain experience in different modes of governing external resource sourcing, modes that include acquisitions, alliances, and purchase contracts. We refer to the ability to choose appropriate governance modes as a firm's mode selection capability. Using a sample of 162 firms in...

We report a 74-year-old woman with acute heart failure and recurrent ischemic strokes as the presenting features of a nonbacterial thrombotic endocarditis complicating a gastric adenocarcinoma. The treatment only allowed a few months remission. Diagnosis of nonbacterial thrombotic endocarditis is rarely obtained while the patient is alive. Coagulat...

We report a 74-year-old woman with acute heart failure and recurrent ischemic strokes as the presenting features of a nonbacterial thrombotic endocarditis complicating a gastric adenocarcinoma. The treatment only allowed a few months remission. Diagnosis of nonbacterial thrombotic endocarditis is rarely obtained while the patient is alive. Coagulat...

We argue that we can reach a better understanding of the relationships between firm resources and competitive advantage by considering actions that firms take against their rivals' resources in factor markets and political markets. We outline market and firm characteristics that facilitate the deployment of competitors' resource-oriented strategies...

We examine the characteristics of national systems of corporate governance to theorize about the nature of the shareholders' and employees' interests when it comes to reorganization, under the assumption that the firm is coalitional in nature. We argue that corporate governance institutions prevalent in the countries of origin of the merging firms...

The acquisition of privately held firms is a prevalent phenomenon that has received little attention in mergers and acquisitions research. In this study, we examine three questions: (1) What drives the acquirer's choice between public and private targets? (2) Do acquisitions of private targets elicit a more positive stock market reaction than acqui...

In this paper, we argue that we can reach a better understanding of the relationships between firm resources and competitive advantage by considering actions that firms take against their rivals' resources in factor markets and political markets. We outline market and firm characteristics that facilitate the deployment of competitors' resource-orie...

Falls occur frequently among the elderly and often lead to hospitalization. Even if uninjured, some of them cannot get up again, and prolonged time on the floor and failed efforts to get up can cause complications. Training methods and exercises for getting up from the floor exist but have not been evaluated. We set up a training course to teach el...

Background Falls occur frequently among the elderly and often lead to hospitalization. Even if uninjured, some of them cannot get up again, and prolonged time on the floor and failed efforts to get up can cause complications. Training methods and exercises for getting up from the floor exist but have not been evaluated. Methods We set up a trainin...

Prior research provides ambiguous results regarding the performance of international acquisitions. Drawing on a survey of 248 acquisitions, we find that acquirers enhance their capabilities when they buy a target with a multinational geographic scope. A financial event study uses a subsample of the acquisitions to show that the financial markets al...

Mergers and acquisitions usually entail organisational turmoil, leadership change, cost-cutting and employee anxiety. Such conditions heighten the possibility of fraud

Transjugular intrahepatic portosystemic shunts (TIPS) are an accepted technique for controlling the complications of portal hypertension. Although the incidence of TIPS-associated bacteremia appears to be low (2%), this complication has a high mortality. We report one case of recurrent enterococcal bacteremia associated with TIPS and regression of...

Abstract This paper studies firms' choices of internal vs external sources of new capabilities. We first compare transaction cost, knowledge-based, and institutional arguments, which all emphasize the attributes of capabilities, including contractual hazards, capability gaps, and legitimacy. We next contrast these arguments with propositions that e...

La création d’une anastomose porto-systémique intra-hépatique par voie transjugulaire ou TIPS est une procédure validée dans la prise en charge des complications de l’hypertension portale, en particulier hémorragiques. L’incidence des bactériémies associées à un TIPS est faible, estimée à environ 2 % mais cette complication est souvent grave. Nous...

The orienting model emphasizes two factors that influence firms' choices of internal and external sources of capabilities. First, firms with relevant capabilities, defined as capability closeness and strength, will tend to source internally, while firms that lack relevant capabilities will source externally. Second, an increasing degree of market f...

The volume of acquisitions involving privately held targets has far surpassed that of publicly traded firms in recent years; yet, surprisingly little research has examined private target acquisitions. By analyzing the unique features of the market for private targets, we compare the potential for value creation and value capture in private and publ...

As an inflammatory focus, the atherosclerotic plaque is viewed as a response to aggressions. Suppressing these causal injuries appears as the best means for preventing the disease. Infection is among the clues for answering the etiological challenge of atherosclerosis. Through direct or indirect, and specific or non specific pathways, some candidat...

Recurrent meningitis due to Escherichia coli is an extremely rare infection in adult patients. Most cases have been complications of neurosurgery. We report on the case of a 43-y-old man with 4 recurrent spontaneous episodes of E. coli meningitis related to aspergillar sphenoidal sinusitis. Surgical treatment of sinusitis cured the patient.

INTRODUCTION Where do firms obtain new capabilities? This paper identifies drivers – including both market failures and internal failures – that influence when firms chose internal and external sources for new capabilities. Early studies examining internal and external sourcing stressed that failures in market institutions that govern inter-firm ex...

In this study, we explore the conditions under which acquirers earn abnormal returns. We provide an empirical test of Barney and Chatterjee's arguments by examining the role of the respective resource contribution of the target and the acquirer. Combining an event study with a survey of postacquisition resource transfer on a sample of 101 horizonta...

This paper examines how value is created in horizontal mergers and acquisitions. More specifically, it examines the impact of post-acquisition asset divestiture and resource redeployment on the long-term performance of horizontal acquisitions. The data come from a detailed survey of acquiring firm managers and cover 253 horizontal mergers and acqui...

Business acquisition, resource redeployment, and asset divestiture are elements of a dynamic process in which firms change their businesses by recombining internal and external resources. Analyzing 253 horizontal acquisitions, we show that post-acquisition resource redeployment leads to asset divestiture from the business that receives the redeploy...

Drawing on resource-based theory, the authors examine the extent to which firms redeploy three key marketing resources (brands, sales forces, and general marketing expertise) following horizontal acquisitions. Results from a survey of 253 acquisitions show that highly immobile resources are more likely than less immobile resources to be redeployed....

Drawing on resource-based theory, the authors examine the extent to which firms redeploy three key marketing resources (brands, sales forces, and general marketing expertise) following horizontal acquisitions. Results from a survey of 253 acquisitions show that highly immobile resources are more likely than less immobile resources to be redeployed....

This paper studies redeployment of resources between target and acquiring businesses following horizontal acquisitions. The analysis draws from perspectives that emphasize the strategic importance of resources that are subject to market failure. We define a five-part typology of R&D, manufacturing, marketing, managerial, and financial resources. We...

This paper studies the incidence and impact of bilateral redeployment of resources between target and acquiring firms following 253 horizontal acquisitions involving North American and European firms between 1988 and 1992. The resources include ten types of technical, commercial, administrative and financial resources. We find that acquisitions oft...

This paper focuses on the relationships between observed processes of post-acquisition activities within four cross-border horizontal acquisitions that occurred in the telecommunications equipment manufacturing sector between 1988 and 1992. We discuss the desirability of such acquisitions from a corporate and social welfare standpoint. We report a...

Laurence Capron and Will Mitchell summarise crossborder telecommunications acquisition activity in the US and Europe during the past decade and report a detailed survey of four cross-border horizontal acquisitions that occurred in the telecommunications equipment manufacturing sector between 1988 and 1992. They discuss the context, post-acquisition...

This paper studies redeployment of resources between target and acquiring businesses following horizontal acquisitions. The analysis draws from perspectives that emphasize the strategic importance of resources that are subject to market failure. We define a five-part typology of R&D, manufacturing, marketing, managerial, and financial resources. We...

In today's competitive environments, managers must continually recreate their firms, drawing new knowledge from both internal and external sources. The starting point for such changes is dynamic leadership and highly capable people throughout the organisation. However, even the best and brightest among us need to choose modes of change that suit a...

Version: mode3.doc Acknowledgements: We greatly appreciate research support by Barbara Martens. We also greatly appreciate the participation of telecommunications managers who have generously contributed their time and insights to this project. We are fully responsible for the interpretation of the managers' comments. We gratefully acknowledge fina...

In this paper we examine the effects of horizontal mergers on the R&D activity of merging firms. We claim that such effects are modulated by several factors relating to the characteristics of the merger and the role of merging firms (i.e. acquirer or target). In the empirical analysis we consider a sample composed of 31 mergers with 62 firms involv...

We summarise cross-border telecommunications acquisition activity in the U.S. and Europe during the past decade and report a detailed survey of four cross-border horizontal acquisitions that occurred in the telecommunications equipment manufacturing sector between 1988 and 1992. We discuss the context, post-acquisition activities, and outcomes of t...