Abstract
AbstractThis research analyses the effects of the knowledge overlap between acquirer and target firms on the performance of technological mergers and acquisitions (M&As). Extending previous research that has focused on the quantitative characteristics of knowledge, this research introduces a framework capturing the effects of both the quantity and quality of knowledge in overlapped and nonoverlapped parts of the knowledge base on subsequent innovation performance. Analyzing a data set of 192 technological M&As of 162 high-technology firms from 2001 to 2009, the results show that a high quality of overlapped knowledge has a positive effect on subsequent innovation performance, while the effect is negative for nonoverlapped knowledge quality. In addition, this research investigates the influence of the knowledge quantity on subsequent innovation performance. The implication of this research is that the knowledge overlap in technological M&As is essential for acquiring high-quality knowledge from the target firm and for improving innovation performance.
Highlights
Because technological mergers and acquisitions (M&As) are characterized by the integration of the knowledge bases of two different firms, the knowledge overlap of the firms is a useful concept in studying post-acquisition knowledge integration (Sears & Hoetker, 2014)
The results indicate that a higher quality of the overlapped knowledge positively affects post-M&A innovation performance
A higher quality of the nonoverlapped knowledge causes high integration costs due to a lack of absorptive capacity and negatively affects the post-M&A innovation performance. This study verifies these effects by analyzing the post-M&A innovation performance of 162 high-tech firms engaged in 192 technological M&A deals
Summary
M ost of the foundational research on technological mergers and acquisitions (M&As) has focused on the relationship between the knowledge characteristics of the acquirer and target firms and post-acquisition performance (Ahuja & Katila, 2001; Hagedoorn & Duysters, 2002; Cloodt, Hagedoorn, & Kranenburg, 2006; Kapoor & Lim, 2007; King, Slotegraaf, & Kesner, 2008; Sears & Hoetker, 2014; Orsi, Ganzaroli, De Noni, & Marelli, 2015). Previous studies have investigated the effects of knowledge overlap, the effects of overlapped knowledge and nonoverlapped knowledge, on various dimensions of post-M&A performance, such as inventor productivity (Kapoor & Lim, 2007), post-M&A innovation performance (Cloodt, Hagedoorn, & Kranenburg, 2006; Makri, Hitt, & Lane, 2010; Sears & Hoetker, 2014), knowledge utilization of the target firm’s knowledge base (Orsi et al, 2015), and investment in JOURNAL OF MANAGEMENT & ORGANIZATION. Recent studies have utilized the framework of Makri, Hitt, and Lane (2010) to investigate the impact of the target firm’s overlapped and nonoverlapped knowledge on firm performance (Colombo & Rabbiosi, 2014; Miozzo, Divito, & Desyllas, 2015)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
