Acquiror Learning From Acquisition Experience: Evidence From 1985-1995.

Organizational learning theory is used to explain and predict whether and when acquirors learn from their direct acquisition experience. Acquisitions of 120 acquirors are tracked from 1985-1995 to explore this issue. Results suggest that acquirors experience better acquisition performance when they are managed by CEOs with longer tenure at the firm; there is a moderate temporal interval since the prior acquisition; they have previously undertaken acquisitions of different sizes; and they have made small prior acquisition mistakes; and when they are managed by executives with longer tenure at the firm who do not use acquisition advisors.