Disentangling the Value Creation Mechanism in Cross‐Border Acquisitions: A Process‐Oriented Approach

This study investigates the value creation mechanism in cross-border acquisitions ( CBAs ) by employing a structural equation modeling technique and surveying 103 CBAs performed by Nordic firms. The results reveal that resource possession, resource picking, and resource utilization are three important strategic dimensions for realizing synergy and creating value in CBAs . Furthermore, mediation analysis shows that the two acquisition-based dynamic capabilities—value identification and resource reconfiguration—act as important mediators in how the joining firms’ resource base impacts acquisition outcomes. The results shed light on the mechanisms through which the constructs influence value creation in CBAs and highlight the procedural and dynamic character of these determinants. The results also indicate that an integrative and process perspective, such as the “input-process-output” model proposed in this study, is an important step forward in merger and acquisition (M&A) research. Moreover, numerous research findings offer tactical implications for international acquirers.