Drawing on signaling theory, we explored whether acquirers taking over firms with inter-organizational relationships – that is, corporate venture capital investments and alliances – obtain an information advantage in the M&A market. We investigated the effect of target relationships on innovation performance using a longitudinal study on UK technology acquisitions. Although, we found that target relationships are associated with a higher post-acquisition innovation performance of the acquired units, we also estimated a significant decline in the combined firms’ post-acquisition innovation performance. Our study contributes to the M&A literature by revealing that, despite the valuable role of target relationships in target selection, such relationships make the integration of targets and their relationships more challenging for acquirers.
|Publication status||Published - 24 Oct 2020|
|Event||Strategic Management Society Annual Conference 2020 - United Kingdom, London|
Duration: 24 Oct 2020 → 27 Oct 2020
|Conference||Strategic Management Society Annual Conference 2020|
|Period||24/10/20 → 27/10/20|
Javaid, H., Desyllas, P., & Marsili, O. (2020). How Target Inter-organizational Relationships Influence Innovation in Technology Acquisitions: A Signaling Perspective. Paper presented at Strategic Management Society Annual Conference 2020, London, .