Look at U : Technological Scope of the Acquirer, Technological Complementarity with the Target, and Post-Acquisition R&D Output. / Shafique, Muhammad; Hagedoorn, John.

In: Technovation, 12.04.2022.

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Look at U : Technological Scope of the Acquirer, Technological Complementarity with the Target, and Post-Acquisition R&D Output. / Shafique, Muhammad; Hagedoorn, John.

In: Technovation, 12.04.2022.

Research output: Contribution to journalArticlepeer-review

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@article{e0b0a9e1d4eb4d8e9a7b77edaf1a317c,
title = "Look at U: Technological Scope of the Acquirer, Technological Complementarity with the Target, and Post-Acquisition R&D Output",
abstract = "Different streams of literature in economics and strategy suggest that several characteristic of a firm{\textquoteright}s technological base such as diversity, breadth, depth, and R&D portfolio affect its R&D output. Separately, strategy literature on technological mergers and acquisitions (M&As) suggests that the relationship between technological knowledge bases of the acquirer and the target, such as their technological similarities and complementarities, also affects the post-acquisition R&D output. This paper integrates the knowledge from these streams to further our understanding of technological M&As by examining how the pre-acquisition technological scope of an acquirer, encompassing the diversity and breadth of its technological knowledge base, affects its post-acquisition R&D output. Our analysis of a panel of technological acquisitions suggests that the acquirer{\textquoteright}s technological scope has a U-shaped relationship with post-acquisition R&D output, measured in terms of patent filings. Moreover, technological complementarity between the acquirer{\textquoteright}s and target{\textquoteright}s knowledge bases positively moderates this relationship. Results show that acquirers have higher post-acquisition R&D output when their pre-acquisition technological scope is either narrow or broad rather than moderate and acquirers having a narrow technological scope benefit more from technological complementarities. Our findings have important implications for the effectiveness of corporate R&D strategy and M&A strategy in hi-tech industries.",
keywords = "R&D, technological acquisitions, technological scope, technological diversity, technological complementarity",
author = "Muhammad Shafique and John Hagedoorn",
year = "2022",
month = apr,
day = "12",
language = "English",
journal = "Technovation",
issn = "1879-2383",

}

RIS

TY - JOUR

T1 - Look at U

T2 - Technological Scope of the Acquirer, Technological Complementarity with the Target, and Post-Acquisition R&D Output

AU - Shafique, Muhammad

AU - Hagedoorn, John

PY - 2022/4/12

Y1 - 2022/4/12

N2 - Different streams of literature in economics and strategy suggest that several characteristic of a firm’s technological base such as diversity, breadth, depth, and R&D portfolio affect its R&D output. Separately, strategy literature on technological mergers and acquisitions (M&As) suggests that the relationship between technological knowledge bases of the acquirer and the target, such as their technological similarities and complementarities, also affects the post-acquisition R&D output. This paper integrates the knowledge from these streams to further our understanding of technological M&As by examining how the pre-acquisition technological scope of an acquirer, encompassing the diversity and breadth of its technological knowledge base, affects its post-acquisition R&D output. Our analysis of a panel of technological acquisitions suggests that the acquirer’s technological scope has a U-shaped relationship with post-acquisition R&D output, measured in terms of patent filings. Moreover, technological complementarity between the acquirer’s and target’s knowledge bases positively moderates this relationship. Results show that acquirers have higher post-acquisition R&D output when their pre-acquisition technological scope is either narrow or broad rather than moderate and acquirers having a narrow technological scope benefit more from technological complementarities. Our findings have important implications for the effectiveness of corporate R&D strategy and M&A strategy in hi-tech industries.

AB - Different streams of literature in economics and strategy suggest that several characteristic of a firm’s technological base such as diversity, breadth, depth, and R&D portfolio affect its R&D output. Separately, strategy literature on technological mergers and acquisitions (M&As) suggests that the relationship between technological knowledge bases of the acquirer and the target, such as their technological similarities and complementarities, also affects the post-acquisition R&D output. This paper integrates the knowledge from these streams to further our understanding of technological M&As by examining how the pre-acquisition technological scope of an acquirer, encompassing the diversity and breadth of its technological knowledge base, affects its post-acquisition R&D output. Our analysis of a panel of technological acquisitions suggests that the acquirer’s technological scope has a U-shaped relationship with post-acquisition R&D output, measured in terms of patent filings. Moreover, technological complementarity between the acquirer’s and target’s knowledge bases positively moderates this relationship. Results show that acquirers have higher post-acquisition R&D output when their pre-acquisition technological scope is either narrow or broad rather than moderate and acquirers having a narrow technological scope benefit more from technological complementarities. Our findings have important implications for the effectiveness of corporate R&D strategy and M&A strategy in hi-tech industries.

KW - R&D, technological acquisitions, technological scope, technological diversity, technological complementarity

M3 - Article

JO - Technovation

JF - Technovation

SN - 1879-2383

ER -