Acquire or Perish - Unique Factors Motivating M&A in the Software Industry

Business models used in the software industry constantly evolve. Organizations reconfigure their business models through various means and mergers and acquisitions (M&As) is one of the way. Recent past has witnessed a high frequency of M&As in the software industry. There are some unique factors that potentially influence M&As in the software industry. Using theoretical arguments, this study develops a model that explains the M&As and articulates propositions specific to the software industry. This study also intends to examine the proposition with the M&As that took place in the enterprise content management software area. Findings of this study provide unique insights into the phenomenon of M&As in the software industry and provide an understanding on the evolving business models in this industry sector.