COMPETITIVE POSITIONING AS ANTECEDENTS OF EXPLORATIVE AND EXPLOITATIVE TECHNOLOGICAL ACQUISITIONS: EVIDENCE FROM SEMICONDUCTOR INDUSTRY

Abstract

This research examines how competitive positioning influences target selection of corporate acquisitions. Nowadays, the technological acquisition is considered as an important method to access to novel technologies to the acquirer. While its effect on firm’s innovative performance has been examined, the factors preceeding of acquisition have been less examined. Therefore, we do not have sufficient understanding of under what conditions, what kind of company is acquired. We introduce the concept of exploration and exploitation to classify the fundamental types of technological acquisitions, and we introduce competitive positioning in strategic management studies as its determinants. Using the 2001–2013 data of semiconductor industry, we examined that a company was likely to acquire the other company for exploitative purpose when it was on the more attractive position, and a company was likely to acquire for explorative purpose when it was in the less attractive positioning.