The acquisition performance of italian fashion companies: the interacting effects of brands and diversification

We investigate the acquisition performance of fashion companies, which have competencies that are highly abstract and intangible, and therefore difficult to transfer. Basing on the literature on the transfer of knowledge assets, we argue that there is variance among the players of this industry in terms of types of competencies (more abstract and intangible or less abstract and intangible) and that this variance explains differences in post-acquisition performance. We focus in particular on the moderating effects of the degree of diversification involved in the acquisition. Our empirical study, on a sample of 115 acquisitions made by fashion companies in Italy, brings empirical support to our hypotheses.