Variability and Synchronization of M&A and Alliance Behavior: An Entrainment View

We extend the M&A and alliances literature to include a temporal perspective focusing on when and under what conditions firms should accelerate or slow down their M&A and alliance initiatives. Using a social entrainment model, we explore the relationship between the temporal properties of variability, synchronization and firm performance. We test our model in the context of the U.S specialty pharmaceutical industry. We find a curvilinear relationship between the overall variability of strategic actions and performance. Establishing internal synchronization increases performance while external synchronization of variability with competitors reveals a more complex picture. Our study further opens the window for understanding the creation of competitive advantage by managing rhythm-type strategic actions against time