Abstract

Purpose – The purpose of this study is to analyze the acquisition motivations of startups by incumbent logistics companies, and explore how they affect the digital transformation of incumbent logistics companies. Design/Methodology/Approach – This study used a thematic analysis method to refine data on logistics company and startup mergers and acquisitions, and adopted an open coding procedure to ensure qualitative rigor. The research process consisted of coding primary data from Internet articles and interviews for terms containing acquisition objectives or motives, and grouping them according to the similarity of motives after primary data analysis. These were reorganized into six theory-based themes in the secondary analysis. Findings – The results identify six reasons why incumbent logistics companies acquire digital startups and the three digital strategy directions they pursue through acquisitions. First, the most important reason for the acquisition of startups is to acquire technology; second, to acquire technical and management skills, experience, and capabilities in the form of new employees; and third, to acquire customers, and methods to acquire new customers include expanding market share and entering new markets. Research Implications – Using empirical data from 39 cases, this study suggests that acquiring digital startups is the fastest way for incumbent logistics companies to acquire technology, a surefire way to acquire the capabilities and talent needed for digital transformation, and a way to expand markets while ensuring that digital transformation is not hindered by internal resistance.

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