How Target Inter-organizational Relationships Influence Innovation in Technology Acquisitions: A Signaling Perspective

Research output: Contribution to conferencePaper

Abstract

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.
Original languageEnglish
Publication statusPublished - 24 Oct 2020
EventStrategic Management Society Annual Conference 2020 - United Kingdom, London
Duration: 24 Oct 202027 Oct 2020

Conference

ConferenceStrategic Management Society Annual Conference 2020
CityLondon
Period24/10/2027/10/20

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