Impact of Information Technology Infrastructure Flexibility on Mergers and Acquisitions

The empirical analysis suggests that IT infrastructure flexibility affects M&A through two key pathways: (1) a flexible IT infrastructure facilitates the development of business flexibility that provides the responsiveness to seize M &A opportunities and make acquisitions, and (2) a flexibility in IT integration capability provides the control to integrate the IT and business resources of the acquired firm and realize the economic benefits from M& a.