Motivated by increasing importance and frequently unsatisfying performance of high-technology acquisitions, we explore high-technology acquisitions between established and small technology firms with an aim to develop a better understanding of how firms can realize technology acquisition potentials by accounting for acquisition implementation process. We consider two dimensions of acquisition implementation; acquired firm integration as the structural aspect and non-structural aspect of acquired top manager retention. Empirical literature shows that acquirers who buy small technology firms for their innovative potential often discover that structural integration can diminish the acquired firm’s innovative capabilities that were the crucial motive behind the acquisition. However, structural integration is claimed to be important since it serves as a mechanism of coordination between acquirer and acquired firm. Another important aspect of acquisition implementation is the extent to which the target resources are replaced with acquirer’s resources. In the context of high tech acquisitions, the particularly important resource is the human capital of acquired firm top manager. Starting from the deal and firm level attributes, the likelihood of structural integration and retention of acquired firm’s top manager is predicted.

Acquisition Integration and Leadership Continuity of High-Technology Acquisitions

COLOMBO, MASSIMO GAETANO;ZRILIC, OGNJENKA
2010-01-01

Abstract

Motivated by increasing importance and frequently unsatisfying performance of high-technology acquisitions, we explore high-technology acquisitions between established and small technology firms with an aim to develop a better understanding of how firms can realize technology acquisition potentials by accounting for acquisition implementation process. We consider two dimensions of acquisition implementation; acquired firm integration as the structural aspect and non-structural aspect of acquired top manager retention. Empirical literature shows that acquirers who buy small technology firms for their innovative potential often discover that structural integration can diminish the acquired firm’s innovative capabilities that were the crucial motive behind the acquisition. However, structural integration is claimed to be important since it serves as a mechanism of coordination between acquirer and acquired firm. Another important aspect of acquisition implementation is the extent to which the target resources are replaced with acquirer’s resources. In the context of high tech acquisitions, the particularly important resource is the human capital of acquired firm top manager. Starting from the deal and firm level attributes, the likelihood of structural integration and retention of acquired firm’s top manager is predicted.
2010
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11311/580614
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