Core competence and dominant logic: contributions to the analysis of merger and acquisition process

Abstract

Mergers and acquisitions are one of the most important strategic decisions a company can take. In the 1980s and 1990s, mergers and acquisitions have occurred in large numbers of companies and several theories have been developed to explain the phenomenon. However, most of these theories are related to the financial area. But, non-quantifiable aspects, such as core competencies and dominant logic, have been relegated to the background. Identified this gap, this paper proposes the inclusion of the concept of core competence and dominant logic as an analytical tool to validate a merger process. To do so, this article has rescued the discussion of these concepts in the business strategy field and a case that did not achieve the proposed goals with the merger was examined from this perspective. The result evidence that the adoption of the concepts of core competence and dominant logic helps explain a new insights with the merger process.