Building Acquisition Management Capability to Improve Firm Performance in Acquisitions: An ASEAN Context

In the past two decades, the number of cross-border mergers and acquisitions in ASEAN has progressively expanded as the region has become a desired economic market for trade and investment. Therefore, this study aimed to identify the factors contributing to the success of acquisitions by corporations. It investigates the role of acquisition management capability with strategic integration and acquisition. The non-probability sampling strategy was used to collect information from 51 firms. With a five-point Likert scale, a systematic questionnaire was designed to test the latent variables by employing confirmatory factor analysis. The quantitative method of Structural Equation Modeling was used in the analysis. The results show that the structural model had a Goodness of Fit Index value that indicates all three latent variables and independent variables were valid. The findings indicate that acquisition management capability have a central role in advancing the overall integration of the acquiring firm in the ASEAN context.