Innovation management in collaborative partnerships

Proceedings of the Annual Hawaii International Conference on System Sciences, 2013

This paper presents the findings from a qualitative study on the extent to which three dimensions of proximity -geographic, cognitive, and organisational -impact knowledge transfer and innovation post-merger and acquisition (M&A). Findings show that the elements of proximity substantially influence both knowledge transfer and innovation although the nature of the impact varies and is influenced by the type of management interventions or lack thereof post-M&A.

Strategic management journal, 2017

This paper aims to develop a new theoretical model and helps us to understand how organizations absorb and use external knowledge in acqusition process. Theories of technological innovation, organizational learning, and the resource based view was used to studying the impact of acquisitions on postacquisition innovation performance in the context of the technological inputs. Evaluating the postacquisition innovation output of acquiring firms, authors provides the returns to corporate investments as indicator in acquisition activity. To improve the productivity of the combined assets one organization are merged with assets in another organization, and this relationship between acquisitions and innovation output was focused on the impact of acquisitions on innovation outputs, measured by the patenting frequency of the acquiring firm. Results indicate that technological acquisitions, absolute size of the acquired knowledge base has a positive impact on innovation output, while relative size of the acquired knowledge base reduces innovation output. Research suggests that a balance on both size and relatedness of acquisitions is favored.

International Business Review, 2016

Mergers and Acquisitions (henceforth: M&A) are a popular research topic. The global transaction volume which equals the GDP of economies like Brazil (in 2013 $ 2.24 trillion) emphasizes its significance for managerial practice. Even though domestic transactions still play a major role, the number of cross-border M&A has increased during the last two decades (Shimizu, Hitt, Vaidyanath, & Pisano, 2004). M&A offer firms the opportunity to develop new markets or to seek for the transfer of technology and innovation to keep pace with the globalization of business (Hitt, Franklin, & Zhu, 2006). Even though cross-border deals have played a role in the market for corporate control since the fourth merger wave, a significant increase in terms of numbers and volume of cross-border transactions can be observed since the 2000s. Crossborder M&A differ from domestic M&A, as buyer and target firms are embedded in different cultural environments. Despite the great practical importance of cross-border M&A, there is only little academic knowledge and understanding of the phenomenon (Shimizu et al., 2004). Past research has shown that national culture is an important factor for the success or failure of crossborder M&A (Weber, 1996; Teerikangas & Very, 2006; Stahl & Voigt, 2008). The interaction and management of two different national cultures is a major challenge and a common reason for failure (Bjö rkman, Stahl, & Vaara, 2007). National cultures are relevant for merger integration, processes, and outcomes (Weber, 1996; Stahl & Voigt, 2008). Differences in national cultures can have positive effects (e.g., learning of new routines, knowledge transfer) or negative effects (e.g., distrust, conflicts). Clashes between two cultures due to different values and practices can lead to a lack of collaboration and understanding (Nahavandi & Malekzadeh, 1988; Cartwright & Cooper, 1996), causing the negative performance of cross-border M&A. However, empirical studies concerning cultural differences provide mixed results (Weber, 1996; Morosini, Shane, & Singh, 1998). Despite the increasing research attention on M&A in general and cross-border transactions in particular, there is still an observable gap between academic understanding of the value creating or destroying conditions and the practical importance of M&A (Ellis, Reus, & Lamont, 2009). Due to the constantly low success rates of about 40-60 percent (Homburg & Bucerius, 2006), it must be stated that the key determinants of post-acquisition performance still remain unclear (Weber, Tarba, & Reichel, 2011a;

Journal of Business Research, 2017

This study examines the determinants of performance of cross-border mergers and acquisitions (cross-border M & As) in developed markets initiated by firms from emerging markets. Drawing on social network theory and organizational innovation literature, we hypothesize that business ties of the acquiring firm increase performance of cross-border M & As via enhancing the acquiring firm's technological innovation capability and that environmental turbulence strengthens this mediating model. Moreover, the interplay of cultural distance and technological innovation capability would decrease performance of cross-border M & As. To test the model, we collected data from 186 Chinese firms initiating cross-border M & As in developed markets. As predicted, we found that (1) technological innovation capability of the acquiring firm positively mediates the relationship between business ties and performance of cross-border M & As; (2) environmental turbulence positively moderates the relationship between business ties and technological innovation capability; and (3) cultural distance negatively moderates the relationship between technological innovation capability and performance of crossborder M & As.

Journal of Business Strategy, 2023

2008

The paper investigates the effects of Mergers and Acquisitions (M&A) on corporate research and development (R&D) strategies using Community Innovation Survey (CIS) data on the Dutch manufacturing sector. The focus of the research is whether M&A affect corporate innovation strategies, favouring in-house R&D and innovation expenses versus external technological sourcing. The results show that M&A activities have a positive and significant impact on innovation investments by firms, and particularly on R&D intensity and total expenditure on innovation. M&A affect corporate innovation strategies, favouring in-house R&D versus external technological sourcing. Firm post-merger behaviour favours the consolidation of the knowledge, competences and capabilities that have been acquired by merging with or by buying another firm, confirming that the reasons for a merger or acquisition are most often related to firms ’ innovative performance. Following involvement in a M&A, firms tend primarily t...

Research Policy, 2006

This study examines the post-M&A innovative performance of acquiring firms in four major high-tech sectors. Non-technological M&As appear to have a negative impact on the acquiring firm's post-M&A innovative performance. With respect to technological M&As, a large ...

International Journal of Technology Management, 2015

Innovation is key to company growth, but hinges on timely access to new knowledge. Individual companies have difficulty pursuing innovation and acquiring the knowledge they need on their own. Companies therefore resort to various governance modes (licensing-in, collaborations, mergers and acquisitions, etc.) that suit the preferred innovation trajectories. We expect governance modes directed at knowledge exploration to generate long-term, radical innovations, and governance modes aimed at knowledge exploitation to generate short-term, incremental innovations. Employing data from two Dutch E.F.M. Wubben et al. community innovation surveys, we indeed discovered that companies that license in technology tend to produce more incremental innovations. We also found a strong positive correlation between inter-organisational collaboration and both long-term and short-term innovation. Finally, we concluded that M&As have a major impact on the production of long-term radical innovations.

International Journal of Technology, Policy and Management, 2003

In recent years the number and the transaction amounts of mergers and acquisitions (M&As), both domestic and cross-border, have increased rapidly in virtually all sectors of economic activity. Some recent changes in the business environments of many countries, including the trend towards deregulation, market liberalisation and increasing globalisation, have facilitated the recent wave of M&As. However, empirical studies examining the stock market reaction find little evidence of wealth creation. Similarly, there appears to be little or no improvement in the post-acquisition operating performance. This creates a troubling paradox, since the pace of M&As is not expected to abate in the near future. In this context, this paper addresses the following research questions: What motivates the accelerated pace of M&As activity? How can companies achieve competitive capabilities through cross-border M&As? We argue that, through M&As, companies can obtain the knowledge-based competencies required to achieve the combinative capabilities necessary to compete in today's uncertain and complex business environment. Cross-border M&As can provide a network for knowledge transfer, and can play an important role in restructuring the operations and reallocating assets in the countries where the companies are located, namely by leveraging the competitive capabilities of those companies.

Business Horizons, 2009

Journal of International Marketing, 2010

Journal of Business Strategy

Purpose By providing equal weight to buyers and sellers, the purpose of this paper is to enhance our understanding of the determinants underlying successful mergers and acquisitions (M&As) involving a specific segment of firms involved in such undertakings, i.e., knowledge-intensive innovative and entrepreneurial (KIE) firms. Design/methodology/approach A multiple case study, based on eight semi-structured interviews with CEOs representing acquirers and the acquired firms, investigates the focal phenomenon this study addresses. Findings The results suggest that knowledge-intensive, innovative and entrepreneurial firms promote entrepreneurial intentions and allow value creation of M&As through four overarching measures. These are buyer–seller fit, aligned incentives, long-term thinking and perpetual alliance. Research limitations/implications The outcomes of this research may have limited generalizable due to the chosen research methodology. Therefore, this study recommends future st...

Technology Analysis & Strategic Management, 2002

A large part of the literature from industrial organisation and management expects that, compared with unrelated M&As, related M&As show superior economic performance because of synergetic effects that follow from economies of scale and scope. The current contribution takes the debate on the effect of different M&As somewhat further by studying the effect of M&As on the technological performance of companies. In this study the technological performance of M&As is related to a high-tech sector, i.e. the computer industry. The main result of this research is that the so called strategic and organisational fit between companies involved in M&As seem to play an important role in improving the technological performance of companies (mergers, acquisitions, technological performance) have put this topic on the research agenda.