Mergers and acquisitions: Their effect on the innovative performance of companies in high-tech industries

Cloodt, Myriam; Hagedoorn, John; Kranenburg, Hans van

doi:10.1016/j.respol.2006.02.007

Cited by 426 publications

(428 citation statements)

References 61 publications

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“…Here, strategic issues in M&As are typically related to context variables, and defined as general attributes of the acquiring company, of the target, or their relative positions, that may affect the value creation potential in a transaction (Gerpott 1995). Examples of such strategic characteristics are technological and market relatedness, M&A experience, cultural fit, absolute and relative size of the M&A, and strategic motives for the M&A (Haspeslagh and Jemison 1991;Ahuja and Katila 2001;Hagedoorn and Duysters 2002;Cassiman et al 2005;Schweizer 2005;Cloodt, Hagedoorn, and van Kranenburg 2006;Hitt et al 2009;Hussinger 2010;Makri, Hitt, and Lane 2010;Muehlfeld, Sahib, and van Witteloostuijn 2012;Bauer and Matzler 2014). Superior strategic choices regarding these characteristics create an attractive combination potential.…”

Section: Strategic Manda Characteristicsmentioning

confidence: 99%

“…While M&As may create a potentially attractive combination (Larsson and Finkelstein 1999) to raise the innovation performance of companies (Ahuja and Katila 2001;Prabhu, Chandy, and Ellis 2005;Cloodt, Hagedoorn, and van Kranenburg 2006;Hussinger 2010), critical for realising the potential innovation synergies is the quality of the post-M&A integration (PMAI) (Haspeslagh and Jemison 1991;Ranft and Lord 2002;Epstein 2004;Grimpe 2007). Some companies organise an R&D-specific approach to PMAI, as they consider the importance of the R&D function for the future of organisations and the variety of innovation synergies to be realised (Gerpott 1995;Bannert and Tschirky 2004;Schweizer 2005;Kawazoe and Abetti 2014).…”

Section: Introductionmentioning

confidence: 99%

“…Research in the first stream explores the consequences of antecedents for M&A outcomes (Haleblian et al 2009) Authors take resource complements, knowledge similarity, technological relatedness, cultural, and/or organisational (mis-) fit as indicators of the combination potential of an M&A, with performance implications on accounting and stock-market valuation in general, and patents in particular (Datta, Pinches, and Narayanan 1992;Ahuja and Katila 2001;Prabhu, Chandy, and Ellis 2005;King, Slotegraaf, and Kesner 2008;Stahl and Voigt 2008;Makri, Hitt, and Lane 2010;Malik 2011;Hussinger 2012;Bauer and Matzler 2014). However, such research typically considers PMAI as a black box, disregarding intermediate variables and relevant learnings on integration strategies, and frequently oversimplifies performance (Haleblian et al 2009), let alone innovation performance, to allow for quantitative analysis (Ahuja and Katila 2001;Cloodt, Hagedoorn, and van Kranenburg 2006;Keil et al 2008).…”

Section: Introductionmentioning

confidence: 99%

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Getting post-M&A integration mechanisms tuned in to technological relatedness and innovation synergy realisation

Wubben

Batterink²,

Omta

2016

Technology Analysis & Strategic Management

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Studies on Mergers and Acquisitions (M&A) typically relate innovation synergies to either context characteristics or post-M&A integration. There is little research on how to tune the relevant practices to the benefit of realising specific innovation synergies. It is the purpose of this paper to develop a conceptual framework on innovation synergy realisation in large M&As, that relates the following components: (1) strategic M&A characteristics; and (2) post-M&A integration mechanisms; to (3) innovation synergy realisation. The research explored how different innovation synergies were achieved in nine large medium-tech and high-tech M&As in the life sciences. From this case studies research, it turns out that higher degrees of technological relatedness allow for the realisation of more types of innovation synergy, brought about by the more demanding integration mechanisms structural linking and process re-design. ARTICLE HISTORY

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Section: Strategic Manda Characteristicsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Getting post-M&A integration mechanisms tuned in to technological relatedness and innovation synergy realisation

Wubben

Batterink²,

Omta

2016

Technology Analysis & Strategic Management

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“…Depth is defined as "the amount of within-field knowledge possessed by the acquiring firm" [Prabhu et al, (2005), p.115]. Firms with moderate similarity in knowledge bases are more likely to experience positive innovative performance post-M&A (Ahuja and Katila, 2001;Cloodt et al, 2006;Hagedoorn and Duysters, 2000). Dissimilar knowledge bases would make it harder for firms to integrate their technological assets, whereas too much similarity could reduce knowledge synergies and result in fewer knowledge combinations.…”

Section: Conceptual Overviewmentioning

confidence: 99%

“…Chaudhuri (2004) found that technical incompatibility slows down product development while Breschi et al (2003) suggested that firms develop new technologies related to their existing knowledge bases faster. It seems that a moderate level of similarity between two firms' knowledge bases is positively related to innovation (Ahuja and Katila, 2001;Cloodt et al, 2006;Man and Duyster, 2005;Prabhu et al, 2005).…”

Section: Cognitive Proximitymentioning

confidence: 99%

Proximity, knowledge transfer, and innovation in technology-based mergers and acquisitions

Ensign

Lin

Chreim

et al. 2014

IJTM

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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.Keywords: proximity; knowledge transfer; mergers and acquisitions; M&A; technology management; innovation; post-M&A.Reference to this paper should be made as follows: Ensign, P.C., Lin, C-D., Chreim, S. and Persaud, A. (2014) Samia Chreim is an Associate Professor in the Telfer School of Management at the University of Ottawa. Her research interests include the areas of mergers and acquisitions, cross-organisational collaborations, and change management. She has studied these topics in the fields of healthcare, financial services, engineering and information technology. Her most recent research attends to the notion of boundaries at different levels of analysis.Ajax Persaud is an Associate Professor in the Telfer School of Management at the University of Ottawa. His research focuses on the commercialisation of new technologies, R&D and innovation management, new product development, technology adoption, and e-business. He has received a number of nominations and awards for teaching and research excellence. He has provided management consulting services to small and medium companies and community organisations in Canada and the Caribbean. He has also delivered executive education courses in innovation management, marketing, and e-business to executives of small, medium, and large multinational corporations in Canada, the Caribbean and Europe.

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