Unravelling the link between technological M&amp;A and innovation performance using the concept of relative absorptive capacity

Jo, Gil S.; Park, Gunno; Kang, Jina

doi:10.1080/19761597.2015.1128340

Cited by 44 publications

(40 citation statements)

References 57 publications

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“…Exploration innovation performance was supported more strongly than exploitation innovation performance; the existing knowledge base enables an effective absorption of more knowledge after the acquisition, as the two partners share similar languages and recognition structures, thereby promoting the transfer of explicit and implicit knowledge [17,52]. The above results also support the argument that the use of skills and capabilities within the existing technological trajectory [68] accompanies the development of knowledge [76], as an organization's exploration activity comes from the exploitation of existing knowledge [65].…”

Section: Resultsmentioning

confidence: 99%

“…A firm's knowledge base is a factor that influences firm innovativeness in absorbing external knowledge, and innovation creates new value by recombining existing capabilities, resources, and knowledge [7,12]. Consequently, one of the firms in an M&A transaction develops absorptive capacity as a way to promote innovation [52].…”

Section: Acquirer's Technological Capabilitymentioning

confidence: 99%

“…Acquirer's experience: Firms that implement M&A strategies tend to conduct M&As several times. Therefore, it is necessary to examine M&A experience in the context of technological M&As to understand innovation performance after the merger [52]. The acquirer's experience was measured by the number of M&As the firm went through before the year of the M&A.…”

Section: Independent Variablesmentioning

confidence: 99%

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The Influence of a Firm’s Capability and Dyadic Relationship of the Knowledge Base on Ambidextrous Innovation in Biopharmaceutical M&As

2019

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In recent years, technological mergers and acquisitions (M&As) have become important strategic tools for enterprises to access and utilize new external knowledge. In particular, in the biopharmaceutical industry, M&A activities are actively being progressed due to an increase in new drug development costs, a decrease in R&D productivity, and the patent expiration of blockbuster drugs. However, there is a lack of research on the integrated view of (1) the acquirer’s capability and (2) the dyadic relationship of the knowledge base between the acquirer and target on the innovation performance of the acquirer. Furthermore, there are few empirical studies on the impact of these factors on ambidextrous innovation; that is, exploitative and explorative innovation. Therefore, with this integrated view in mind, this study analyzed the effect of each factor on the exploitative and exploratory innovation performance of the acquirer. A negative binomial regression was conducted using patent data to measure the innovation outcome of the acquirer after M&A. The findings suggest that (1) the acquisition experience of the acquirer and (2) the technological commonness between the acquirer and the target both had a significant impact on the exploitation and exploration innovation performance.

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Section: Resultsmentioning

confidence: 99%

Section: Acquirer's Technological Capabilitymentioning

confidence: 99%

Section: Independent Variablesmentioning

confidence: 99%

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The Influence of a Firm’s Capability and Dyadic Relationship of the Knowledge Base on Ambidextrous Innovation in Biopharmaceutical M&As

2019

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“…Samsung also had patents that allowed the company to seize opportunities in developing smart electric cars. Thus, we can say that technological similarity and technological digestibility is important [17]. Samsung was quick to sense a promising new market segment but also fast to reconfigure and transform its business in order to assimilate and accommodate a new business partner.…”

Section: Innovation Through Mandas: the Rise Of A New Contender-samsungmentioning

confidence: 99%

The Transition of Samsung Electronics through Its M&A with Harman International

Kim

Chun

Nhung

et al. 2019

Journal of Open Innovation: Technology, Market, and Complexity

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The automobile industry is experiencing unprecedented change. Despite its century-old history based mostly in the art of mechanics, increased development of technology and heightened awareness of environmental issues has pushed traditional automobile manufacturers to completely re-examine their strategies. It has also newly invited nontraditional players such as electronic and IT tycoons namely, Samsung, Google, and Apple into the game. The advent of electric cars with cutting edge technology requires active participation and collaboration from diverse industries requiring cross-over joint ventures and M&As. In this light, the recent acquisition of Harman Incorporated for eight billion dollars by Samsung Electronics in 2016 is a significant event that signals great change. As the electronics tycoon expands its boundaries preparing to become an important player in the automobile industry, this study examines how Samsung increases and integrates its knowledge base and innovation capability through the M&A deal with Harman in attempts to enhance its competitiveness in the rapidly evolving automotive market.

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“…In the subject literature, there are also concepts of absorptive capacities that are described as a construct consisting of four components, i.e. recognition of external knowledge, its assimilation, transformation, and use for business purposes (Volberda et al, 2010;Marabelli & Newell, 2014;Jo et al, 2016). However, these components are presented rather as phases interacting with each other than the successive stages of a linear process.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Key Elements of the Protechnological Absorptive Capacity of Financial Companies in Poland

Glabiszewski¹,

Grego-Planer²,

Liczmańska‐Kopcewicz³

et al. 2018

CEBR

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A number of socioeconomic phenomena that are intensifying nowadays, in particular an increase in competition and customer expectations, forces enterprises to seek new sources of innovation, including process (technological) ones to ensure their ability to compete effectively. It turns out that they are increasingly transferring them from their environment, and the success of this undertaking is dependent on their absorptive capacities. Therefore, the main goal of this article was to identify the key absorptive capacities that are endogenous determinants of the effectiveness of the process of the absorption of process innovations in the activity of Poland's financial companies. The empirical part of the article was written on the basis of an online survey carried out in 2015-2016. It was sent to the heads of 155 commercial financial sector companies registered in Poland, namely all banks, property and life insurance companies, investment funds and universal fund management companies. In total, 111 entities filled in the online survey questionnaire. In the conducted study an attempt was made to assess the direction and strength of dependence between the level of development of specific absorptive capacities of financial companies and the scale of the effects achieved as a result of the absorption of process innovations. Personal and organizational absorptive capacities of financial companies in Poland remain in a positive and strong linear relationship with their effectiveness achieved in the scope of the absorption of process innovations. The results identified the key absorptive capacities that determine the effects obtained in the process of absorbing technological innovations, taking into account the specific conditions prevailing in the service sector.

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Unravelling the link between technological M&A and innovation performance using the concept of relative absorptive capacity

Cited by 44 publications

References 57 publications

The Influence of a Firm’s Capability and Dyadic Relationship of the Knowledge Base on Ambidextrous Innovation in Biopharmaceutical M&As

The Influence of a Firm’s Capability and Dyadic Relationship of the Knowledge Base on Ambidextrous Innovation in Biopharmaceutical M&As

The Transition of Samsung Electronics through Its M&A with Harman International

Key Elements of the Protechnological Absorptive Capacity of Financial Companies in Poland

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