External Acquisition Research Articles

The effects of declining capitalization on equity acquisition by commercial banks

Abstract This study examines external equity acquisition by banks with declining capitalization. We observe a nonlinear (quadratic) relationship between equity acquisition and a bank's level of capitalization in which equity acquisition rises as capitalization declines until a threshold level of undercapitalization is reached, below which equity acquisition declines. To the extent that banks falling below this threshold level of capital are deemed unworthy of investment by current or prospective shareholders, their failure to acquire external equity can be interpreted as an indication of potential nonviability.

Imitation as a strategic option for external acquisition of technology

Abstract There is often a clash between the necessity to innovate and the high economic risks involved in the introduction of such novelties. Therefore, management has to consider, if there are other strategies of successful technology management than to innovate. One might be the imitation strategy. This survey analyzes the capabilities a firm must have in order to carry out an imitation strategy successfully. Sixty-six firms were interviewed for the survey. Using a LISREL model it was shown that successful imitators must have the following capabilities in order to succeed in overcoming barriers to market entry built up by the innovator. These are: strengths in the areas of technology, marketing and production, and the existence of suitable information gathering capabilities. Furthermore, imitation projects are successful only if they also succeed in realizing a high degree of similarity between the innovative and imitative product (high imitation degree) and in impeding the market entry of further imitators. Further development, or an improvement of the innovation (a low imitation degree) does not affect imitation success in a positive way.

Developing a ‘receptive’ R&D environment for inward technology transfer: a case study of the chemical industry

AbstractThe purpose of this paper is to show how certain internal organisational activities affect an organisation's ability to engage in the external acquisition of technology commonly referred to as inward technology transfer. The study focuses on a technology trawling exercise conducted by ICI and reveals difficulties in ‘receptivity’ on the part of the receiving businesses. A conceptual framework is developed which identifies four major components of the inward technology transfer process. These are: ‘Awareness’‐‘Association’‐‘Assimilation’‐‘ Application’. Using this conceptual device separate studies are conducted within two large multinational chemical companies in the North West of England. The findings reveal the importance of certain non‐routine activities and indicate how successful organisations are able to manage the tension between the need for creative non‐routine assimilation processes to generate a ‘receptive’ environment for future growth and efficient routine activities to remain competitive in the short‐ierm.

Theory and research on the external acquisition of technology

Theory and research on the external acquisition of technology

Corporate diversification, strategic planning and performance in large multiproduct firms

This study explores the relationship between corporate diversification and strategic planning in large multiproduct firms by focusing on the strategic, organizational and performance characteristics associated with each avenue to diversification. High levels of horizontal sharing among Strategic Business Units (SBUs), together with a sophisticated planning system that embodies a long-term orientation, are associated with markedly higher measures of financial performance and revenues derived from new products. However, firms attempting to pursue horizontal sharing among SBUs with a strong external acquisition orientation evinced lower levels of performance. In addition, diversification based on portfolio management is linked to a high proportion of revenues derived from mature products and markets. Implications for integrating strategic market planning with corporate planning activities are discussed, especially as they relate to building shared marketing and other functional programs among SBUs.

Theory and research on the external acquisition of technology

Theory and research on the external acquisition of technology

External Manufacturing Investment in a Peripheral Rural Region: The Case of Devon and Cornwall

POTTER J. (1993) External manufacturing investment in a peripheral rural region: the case of Devon and Cornwall, Reg. Studies 27, 193–206. This paper presents original and recent evidence on the scale and structure, evolution and causes of external manufacturing investment in Devon and Cornwall. External investment is shown to be very important, and to have grown considerably during the last three decades. Externally owned units are analysed in terms of their size, manufacturing sector and parent company characteristics. Regional policy has played a critical role in attracting significant levels of greenfield branch investment, while external acquisition of existing firms has increased rapidly. Findings demonstrate the current central importance of large firm branch plants to the region's manufacturing activity. POTTER J. (1993) L'investissement externe dans l'industrie manufacturiere aux regions rurales peripheriques: cas d'etude du Devon et des Cournouailles, Reg. Studies 27, 193–206. Cet article presen...

Technological communities and the diffusion of knowledge

The external acquisition of technological knowledge is a central theme in research on technology management. In this paper it is argued that technological communities may provide a useful unit of analysis to study information and knowledge exchange among scientists and engineers working on a particular research agenda. Based on a worldwide survey of more than 700 individuals engaged in the research and development of neural network technology, the dynamics within that particular community are explored. The primary focus is to compare the characteristics of academic and industrial researchers, with special attention given to the timing of their entry into the field.

External technology acquisition in large multi‐technology corporations

Based on different contractual forms and their associated degrees of organizational integration, a typology of strategies for technology acquisition (sourcing) is constructed. Based on a sample of corporations in Europe, Japan and US, it is shown that external acquisition of technology through various strategies increases in importance in general. Product case studies further show that external acquisition of technology is associated with technology diversification into increasingly costly new technologies. As a result corporations become multi‐technological (‘multech’). At the same time quasi‐integrated corporate systems of innovation arise in which in‐house R&D is managed together with a mix of strategies for external acquisition of technology, using various contractual forms. This presents new challenges to traditional in‐house R&D management. Technology diversification is moreover shown to be associated with growth of sales as well as with growth of R&D expenditures. A high level of external technology acquisition presents risks that ought to lead companies to consider technology based product diversification.

External acquisition of knowledge for innovations—A research agenda

External acquisition of knowledge for innovations—A research agenda

R&D Conference: External Acquisition of Technological Knowledge

R&D Conference: External Acquisition of Technological Knowledge

CORPORATE RESTRUCTURING AND THE U. S. ECONOMY: A VIEWPOINT

During the past decade Wall Street practitioners devised various methods for converting undervalued corporate shares into instant wealth. Their tactics, however, have had highly negative consequences for a number of companies. Many companies have, in fact, restructured with substantial debt with severe operational consequences. The purpose of this paper is to examine the reasoning behind such a boom in the hostile takeover activities. It will discuss the importance and implications of restructuring, causes for corporate hostile takeovers and the defense strategies that effectively resist external acquisition.

Are category membership decisions based on concept gradedness?

Abstract This article discusses the evidence with respect to the view that both typicality judgements and category membership decisions are based on a graded concept representation. This is the single-process view. A taxonomy of concepts is developed on the basis of differences in external structure, internal structure and concept acquisition. The consequences of the single-process view are examined for each taxon separately, and the relevant evidence is considered. It appears that there are problems with the single-process view with respect to each of these dimensions, especially external structure and method of concept acquisition.

External Takeover and Regional Economic Development: A Survey and Critique

LOVE J. H. (1989) External takeover and regional economic development: a survey and critique, Reg. Studies 23, 000–00. This paper offers a review and critique of the literature on the impact on regional development of increasing external control brought about by external acquisition. External control is shown to be an important and pervasive phenomenon, and acquisition an increasingly important method by which external control may grow. The existing economics literature on mergers is shown to provide an unsuitable framework for analysis at the regional level, and it is noted that while external control has been widely studied, relatively little systematic research has been undertaken to quantify the economic effects of inward acquisition. An agenda of research priorities is proposed. LOVE J. H. (1989) Prise de controle externe et developpement economique regional: examen et critique, Reg. Studies 23, 000–00. Cet article fait un compte rendu et une critique de la documentation traitant de l'impact du contr...