Acquisitions of small high-tech firms as a mechanism for external knowledge sourcing: The integration-autonomy dilemma

Technological Forecasting and Social Change

Volumn 120, Issue , 2017, Pages 334-346

  Aghasi, Keivan ^a   Colombo, Massimo G ^a   Rossi Lamastra, Cristina ^a  

^a POLITECNICO DI MILANO   (Italy)

Author keywords

Acquisitions of small high tech firms; Component technology; Post acquisition implementation strategies; Prior alliances; Technological market relatedness

Indexed keywords

COMMERCE; INTEGRATION; MERGERS AND ACQUISITIONS;

COMPONENT TECHNOLOGIES; HIGH-TECH FIRMS; IMPLEMENTATION STRATEGIES; MARKET-RELATEDNESS; PRIOR ALLIANCES;

TECHNOLOGY TRANSFER;

ECONOMETRICS; HIGH TECHNOLOGY INDUSTRY; HYPOTHESIS TESTING; INDUSTRIAL POLICY; POLICY IMPLEMENTATION; STRATEGIC APPROACH; TECHNOLOGY ADOPTION;

EID: 85012929195     PISSN: 00401625     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.techfore.2017.02.010     Document Type: Article

References (83)

1. Agarwal, R., Anand, J., Bercovitz, J., Croson, R., Spillovers across organizational architectures: the role of prior resource allocation and communication in post-acquisition coordination games. Strateg. Manag. J. 33:6 (2012), 710–733.
2. Ahuja, G., Katila, R., Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study. Strateg. Manag. J. 22:3 (2001), 197–220.
3. Anand, B., Khanna, T., Do firms learn to create value? The case of alliances. Strateg. Manag. J. 21:3 (2000), 295–315.
4. Angwin, D., Meadows, M., New integration startegies for post-acquisition management. Long Range Plan. 48:4 (2015), 235–251.
5. Argyres, N., Technology strategy governance structure and interdivisional coordination. J. Econ. Behav. Organ. 28:3 (1995), 337–358.
6. Arora, A., Fosfuri, A., Ronde, T., Managing licensing in a market for technology. Manag. Sci. 59:5 (2013), 1092–1106.
7. Barney, J., Returns to bidding firms in mergers and acquisitions: reconsidering the relatedness hypothesis. Strateg. Manag. J. 9:1 (1988), 71–78.
8. Bauer, F., Matzler, K., Antecedents of M&a success: the role of strategic complementarity, cultural fit, and degree and speed of integration. Strateg. Manag. J. 35:2 (2014), 269–291.
9. Bergh, D., Executive retention and acquisition outcomes: a test of opposing views on the influence of organizational tenure. J. Manag. 27:5 (2001), 603–622.
10. Bogers, M., Zobel, A.K., Afuah, A., Almirall, E., Brunswicker, S., Dahlander, L., Frederiksen, L., Gawer, A., Gruber, M., Haefliger, S., Hagedoorn, J., Hilgers, D., Laursen, K., Magnusson, M.G., Majchrzak, A., McCarthy, I.P., Moeslein, K.M., Nambisan, S., Piller, F.T., Radziwon, A., Rossi-Lamastra, C., Sims, J., Ter Wal, A.L.T., The open innovation research landscape: established perspective and emerging themes across different levels of analysis. Ind. Innov. 24:1 (2017), 8–40, 10.1080/13662716.2016.1240068.
11. Buchholtz, A., Ribbens, B., Honle, I., The role of human capital in post-acquisition CEO departure. Acad. Manag. J. 46:4 (2003), 506–514.
12. Cannella, A., Hambrick, D., Effects of executive departures on the performance of acquired firms. Strateg. Manag. J. 14:1 (1993), 137–152.
13. Capron, L., The long term performance of horizontal acquisitions. Strateg. Manag. J. 20:11 (1999), 987–1018.
14. Capron, L., Guillen, M., National corporate governance institutions and post-acquisition target reorganization. Strateg. Manag. J. 30:8 (2009), 803–833.
15. Capron, L. & Mitchel, W., 2012. Build, borrow or buy: Solving the growth dilemma. s.l.: Harvard Business.
16. Capron, L., Mitchell, W., Swaminathan, A., Asset divestiture following horizontal acquisitions: a dynamic view. Strateg. Manag. J. 22:9 (2001), 817–844.
17. Carapeto, M., Moeller, S., Faelten, A., The good, the bad, and the ugly: A survival guide to M&A. 2009 (London: s.n.).
18. Cassiman, B., Colombo, M., Garrone, P., Veugelers, R., The impact of M&A on the R&D process an empirical analysis of the role of technological- and market-relatedness. Res. Policy 34:2 (2005), 195–220.
19. Clark, H., Using Language. 1996, Cambridge University Press, Cambridge U.K.
20. Cloodt, M., Hagedoorn, J., Van Kranenburg, H., Mergers and acquisitions: their effect on the innovative performance of companies in high-tech industries. Res. Policy 35:5 (2006), 642–654.
21. Coff, R., How buyers cope with uncertainty when acquiring firms in knowledge intensive industries: Caveat Emptor. Organ. Sci. 10:2 (1999), 144–161.
22. Colombo, M., Alliance form: A test of the contractual and competence perspectives. Strateg. Manag. J. 24:12 (2003), 1209–1229.
23. Colombo, M., Rabbiosi, L., Technological similarity, post-acquisition R&D reorganization, and innovation performance in horizontal acquisitions. Res. Policy 43:6 (2014), 1039–1054.
24. Das, S., Sen, P., Sengupta, S., Impact of strategic alliances on firm valuation. Acad. Manag. J. 41:1 (1998), 27–41.
25. Datta, D., Organizational fit and acquisition performance: effects of post-acquisition integration. Strateg. Manag. J. 12:4 (1991), 281–297.
26. Datta, D., Grant, J., Relationships between type of acquisition, the autonomy given to the acquired firm and acquisition success: an empirical analysis. J. Manag. 13:1 (1990), 29–44.
27. Desyllas, P., Hughes, A., Do high technology acquirers become more innovative?. Res. Policy 39:8 (2010), 1105–1121.
28. Dushnitsky, G., Leon, M., When do incumbents learn from entrepreneurial ventures? Corporate venture capital and investing firm innovation rates. Res. Policy 34:5 (2005), 615–639.
29. Ernst, H., Vitt, J., The influence of corporate acquisitions on the behaviour of key inventors. R&D Manag. 30:2 (2000), 105–119.
30. Galbraith, J., Organization Design. 1977, Addison-Wesley, Reading: MA.
31. Graebner, M., Momentum and serendipity: how acquired leaders create value in the integration of technology firms. Strateg. Manag. J. 25:9 (2004), 751–777.
32. Graebner, M., Eisenhardt, K., Roundy, P., Success and failure in technology acquisitions lessons for buyers and sellers. Acad. Manag. Perspect. 24:3 (2010), 73–92.
33. Graebner, M., Heimeriks, K.H., Huy, Q.N., Vaara, E., The process of postmerger integration: a reviewand agenda for future research. Acad. Manag. Ann. 11:1 (2017), 1–32.
34. Grant, R., Toward a knowledge-based theory of the firm. Strateg. Manag. J. 12:Winter Special Issue (1996), 109–122.
35. Grimpe, C., Hussinger, K., Resource complementary and value capture in firm acquisitions: the role of intellectual property rights. Strateg. Manag. J. 35:2 (2014), 1762–1780.
36. Hagedoorn, J., Sadowski, B., The transition from strategic technology alliances to mergers and acquisitions: an exploratory study. J. Manag. Stud. 36:1 (1999), 87–107.
37. Hambrick, D., Cannella, A., Relative standing: a framework for understanding departures of acquired executives. Acad. Manag. J. 36:4 (1993), 733–762.
38. Haspeslagh, P., Jemison, D., Making Acquisitions Work. 1991, INSEAD, Fontainbleau France.
39. Higgins, M., Rodriguez, D., The outsourcing of R&D through acquisitions in the pharmaceutical industry. J. Financ. Econ. 80 (2006), 351–383.
40. Hoetker, G., The use of logit and probit models in strategic management research: critical issues. Strateg. Manag. J. 28:4 (2007), 331–343.
41. Hung, S., Tang, R., Factors affecting the choice of technology acquisition mode: an empirical analysis of the electronic firms of Japan, Korea and Taiwan. Technovation 28:9 (2008), 551–563.
42. Jemison, D., Sitkin, S., Corporate acquisitions: a process perspective. Acad. Manag. Rev. 11:1 (1986), 145–163.
43. Kapoor, R., Lim, K., The impact of acquisitions on the productivity of inventors at semiconductor firms: a synthesis of knowledge-based and incentive-based perspectives. Acad. Manag. J. 50:5 (2007), 1133–1155.
44. King, G., Tomz, M., Wittenberg, J., Making the most of statistical analyses: improving interpretation and presentation. Am. J. Polit. Sci. 44:2 (2000), 341–355.
45. Kogut, B., Zander, U., Knowledge of the firm, combinative capabilities and the replication of technology. Organ. Sci. 3:3 (1992), 383–397.
46. Kogut, B., Zander, U., What firms do?Coordination, identity and learning. Organ. Sci. 7:5 (1996), 502–518.
47. Lane, P., Lubatkin, M., Relative absorptive capacity and interorganizational learning. Strateg. Manag. J. 19:5 (1998), 461–477.
48. Lanjouw, J., Schankerman, M., Protecting intellectual property rights: are small firms handicapped?. J. Law Econ. 47:1 (2004), 45–74.
49. Larsson, R., Finkelstein, S., Integrating strategic, organizational and human resource perspectives on mergers and acquisitions: a case survey of synergy realization. Organ. Sci. 10:1 (1999), 1–26.
50. Makri, M., Hitt, M., Lane, P., Complementary technologies knowledge relatedness and invention outcomes in high technology mergers and acquisitions. Strateg. Manag. J. 31:6 (2010), 602–628.
51. McCarthy, K., Aalbers, H., Technological acquisitions: the impact of geography on post-acquisition innovative performance. Res. Policy 45:9 (2016), 1818–1832.
52. Mintzberg, H., Strcuture in 5's: a synthesis of the research on organization design. Manag. Sci. 26:3 (1980), 322–341.
53. Mowery, D., Oxley, J., Silverman, B., Strategic alliances and interfirm knowledge transfer. Strateg. Manag. J. 17:2 (1996), 77–91.
54. Nutall, C., HP sued over autonomy deal. Financial Times, 2012 (26 November).
55. Pablo, A., Determinants of acquisition integration level: a decision making perspective. Acad. Manag. J. 37:4 (1994), 803–836.
56. Paruchuri, S., Nerkar, A., Hambrick, D., Acquisition integration & productivity losses in the technical core: disruption of inventors in acquired companies. Organ. Sci. 17:5 (2006), 545–562.
57. Porrini, P., Can a previous alliance between an acquirer and a target affect acquisition performance?. J. Manag. 30:4 (2004), 545–562.
58. Puranam, P., Srikanth, K., What they know vs. what they do: how acquirers leverage technology acquisitions. Strateg. Manag. J. 28:8 (2007), 805–825.
59. Puranam, P., Singh, H., Chaudhuri, S., Integrating acquired capabilities: when structural integration is (un)necessary?. Organ. Sci. 20:2 (2009), 313–328.
60. Puranam, P., Singh, H., Zollo, M., Organizing for innovation: managing the coordination-autonomy dilemma in technology acquisitions. Acad. Manag. J. 49:2 (2006), 263–281.
61. Ranft, A., Lord, M., Acquiring new knowledge: the role of retaining human capital in acquisitions of high-tech firms. J. High Technol. Managem. Res. 11:2 (2000), 295–319.
62. Ranft, A., Lord, M., Acquiring new technologies and capabilities: a grounded model of acquisition implementation. Organ. Sci. 13:4 (2002), 420–442.
63. Ransbotham, S., Mitra, S., Target age and the Acquisition of Innovation in high-technology industries. Manag. Sci. 56:11 (2010), 2076–2093.
64. Reuer, J., Ragozzino, R., Adverse selection and M&A design: the roles of alliances and IPOs. J. Econ. Behav. Organ. 66:2 (2008), 195–212.
65. Reus, T., Lamont, B., The double-edged sword of cultural distance in international acquisitions. J. Int. Bus. Stud. 40:8 (2009), 1298–1316.
66. Saxton, T., Dollinger, M., Target reputation and appropriability: picking and deploying resources in acquisitions. J. Manag. 30:1 (2004), 123–147.
67. Schweitzer, L., Organizational integration of acquired biotechnology companies into pharmaceutical companies: the need for a hybrid approach. Acad. Manag. J. 48:6 (2005), 1051–1074.
68. Sears, J., Hoetker, G., Technological overlap, technological capabilities, and resource recombination in technological recombination. Strateg. Manag. J. 35:1 (2014), 48–67.
69. Shrivastava, P., Postmerger integration. J. Bus. Strateg. 7:1 (1986), 65–76.
70. Silverman, B., Technical resources and the logic of corporate diversification. third ed., 2002, Routledge.
71. Srikanth, K., Puranam, P., Integrating distributed work: comparing task design, communication, tacit coordination mechanisms. Strateg. Manag. J. 32:8 (2011), 849–875.
72. Stanwick, S., Stanwick, P., HP and autonomy: an unethical marriage made in hell. Int. J. Bus. Soc. Sci. 5:10 (2014), 75–79.
73. Thompson, J., Organizations in Action. 1967, McGraw-Hill, New York.
74. Tsai, W., Knowledge transfer in intraorganizational networks: effects of network position and absorptive capacity on business unit innovation performance. Acad. Manag. J. 44:5 (2001), 996–1004.
75. Tushman, M., Nadler, D., Information processing as an integrating concept in organizational design. Acad. Manag. Rev. 3:3 (1978), 613–624.
76. Van de Van, A., Delbecq, A., A task contingent model of work unit strcuture. Adm. Sci. Q. 19:2 (1974), 183–197.
77. Vanhaverbeke, W., Duysters, G., Noorderhaven, N., External technology sourcing through alliance or acquisitions: an analysis of the application specific integrated circuits industry. Organ. Sci. 13:6 (2002), 714–733.
78. West, J., Bogers, M., Leveraging external sources of innovation: a review of research on open innovation. J. Prod. Innov. Manag. 31:4 (2014), 814–831.
79. Wulf, J., Singh, H., How do acquirers retain successful target CEO? The role of governance. Manag. Sci. 57:12 (2011), 2101–2114.
80. Zaheer, A., Castaner, X., Souder, D., Synergy sources, target autonomy and integration in acquisitions. J. Manag. 39:3 (2013), 604–632.
81. Zaheer, A., Hernandez, E., Banarjee, S., Prior alliance with targets and acquisition performance in knowledge intensive industries. Oraganization Sci. 21:5 (2010), 1072–1091.
82. Zhao, X., Technological innovation and acquisitions. Manag. Sci. 55:7 (2009), 1170–1183.
83. Ziedonis, R., Don't fence me in: fragmented markets for technology and the patent acquisition strategies of firms. Manag. Sci. 50:4 (2004), 804–820.