(Dis)Aggregating Alliance, Joint Venture, and Merger and Acquisition Performance: A Meta-Analysis

Extant research posits that mergers and acquisition (M&As) do not create value. Still many firms adopt expansion strategies such as alliances, joint ventures (JVs), and M&As to grow and enhance their performance. Through performing a meta-analysis on 204 papers that assess the relationship between the three most prevalent expansion strategies formed by firms, alliances, JVs, and M&As and their different substantive and symbolic performance effects, this study contributes in two ways. First, it becomes clear that alliances and M&As enhance a firm’s substantive performance, while no positive performance effect is observed for JVs. In turn, all three expansion strategies boost a firm’s symbolic performance in terms of its legitimacy and status. Second, a distinction between their effects on a firm’s substantive performance in terms of their market-based and accounting-based performance shows that alliances and M&As both positively contribute to a firm’s accounting-based performance, while only the former spurs a firm’s market-based returns. This indicates that M&As have more long-term accounting-based performance effects compared to alliances and JVs, which suggests that in the long-term firms do best by expanding through M&As.