The link between mergers and acquisitions and innovation

Abstract

Purpose The link between mergers and acquisitions (M&A) and innovation has been analysed in both corporate finance studies and the innovation literature. Despite this attention and the practical evidence that highlights different connections between these two terms, there is a need to investigate the latest trends with regard to these important topics, and to put a particular focus on the emerging paradigm of open innovation. Thus, this paper aims to provide a systematic literature review (SLR) about the relationship between M&As and the concept of innovation in the current scenario. Design/methodology/approach Through an SLR from 2012 to June 2017, 55 papers have been identified and analysed to give a better understanding of the motivations and the methodologies adopted in past studies. Findings This paper identifies various conceptual and research methodological characteristics of studies that have connected, directly or indirectly, M&As and innovation in recent years. In addition, the results highlight a scarcity of studies that explicitly or implicitly refer to the open innovation paradigm, marking only a partial understanding of this emerging phenomenon. Originality/value This paper improves the knowledge on the link between extraordinary corporate transactions and innovation, and it highlights that a clear consensus, particularly regarding the open innovation paradigm, is lacking. Thus the authors propose that future studies should carefully evaluate M&As by following the open innovation approach.

Triggering technological innovation through cross-border mergers and acquisitions: A micro-foundational perspective

“…Thus, Dezi et als (2018) review enhanced the knowledge of the link between innovation and mergers and acquisitions but did not distinguish between micro and macro levels of analysis, as well as between domestic and cross-border mergers and acquisitions. Second, another difference and contribution at the same time, stems from the fact that our systematic review provides a much more up-to-date and comprehensive insight into the 'state of the art' than the systematic review conducted by Dezi et al (2018) in this topic, as we have covered a period of 33 years, compared to approximately 6 years that Dezi et al's (2018) review covers (from 2012 to June 2017). Third, in our analysis, contrary to Dezi et al's (2018) systematic review, we embraced a theme-based logic for the synthesis part, that allowed us to proceed systematically in the content analysis of the selected studies and identify 8 broad themes that we have used to provide a summary of the key results obtained in extant research.…”

“…In particular, a systematic review is important and necessary as it facilitates theory development, closes off areas of inquiry where a vast amount of research exists, and reveals fruitful research paths for new streams where research is needed (Nielsen et al 2017;Webster & Watson, 2002). We identified only one systematic review paper that discussed the link between M&As and innovation (Dezi et al, 2018) but in a much differing way, which fairly constitutes a very different systematic review than the one we provide here. More specifically, the differences between our systematic review and that of Dezi et al (2018) are the following.…”

“…We identified only one systematic review paper that discussed the link between M&As and innovation (Dezi et al, 2018) but in a much differing way, which fairly constitutes a very different systematic review than the one we provide here. More specifically, the differences between our systematic review and that of Dezi et al (2018) are the following. First, in contrast to Dezi et als' (2018) review, we focus on cross-border mergers and acquisitions (compared to mergers and acquisitions in general) as well as on the micro-foundational perspective of the link between technological innovation and cross-border M&As (Dezi et al's study makes no such distinctions).…”

A Systematic Review of Research on Sustainability in Mergers and Acquisitions

“…This general objective is broken down into the following specific objectives: (1) To assess the academic impact of the research topic, and (2) to determine the structure of the research topic. Following recent literature reviews on M&A [5,6], the research questions are settled as RQ1. Which are the main studies and research articles in the literature that link M&A and sustainability?…”

Does Technology Matter When Selecting a Target Firm in an M&A? Some Evidence on a European M&A Sample

“…The debate on a firm's motivation to be a part of M&A deals is complex. In the main hypothesis there is the will to: increase market share; diversify risk by entering new markets (new country, new customers) or vertical integration; improve efficiency (with scale economies and synergies in production and/or marketing and or &D investment ; increase ownership control; build an empire; acquire assets Andrade, Mitchell & tafford, 2001;Capron, Dussauge & Mitchell, 1 ;Chakrabarti, Hauschildt & verkr p, 1 ;Haspeslagh & emison, 1 1;Jensen & Ruback, 1983;Seth, 1990;Dezi, Battisti, Ferraris & Papa, 2018).…”