On the importance of technological relatedness: SMEs versus large acquisition targets

K. Hussinger

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33 Citations (Scopus)

Abstract

This paper empirically investigates a sample of German domestic merger and acquisitions (M&As) in the 1990s to analyze the importance of a related technology portfolio in the decision to acquire a particular firm. The novelty of this analysis lies in the fact that the sample does not contain exclusively large firms, but also a large share of small and medium-sized enterprises (SMEs). The empirical results Suggest that firms engage in M&As to strengthen their technological competencies. A related technology portfolio is, in particular, important for the decision to acquire SMEs. This suggests an information advantage of acquirers with related technologies. 

Original languageEnglish
Pages (from-to)57-64
Number of pages8
JournalTechnovation
Volume30
Issue number1
DOIs
Publication statusPublished - 1 Jan 2010

Keywords

  • M&A
  • Technological proximity
  • SMEs
  • RESOURCE-BASED VIEW
  • R-AND-D
  • COMPETITIVE ADVANTAGE
  • INNOVATION
  • FIRMS
  • PERFORMANCE
  • DIVERSIFICATION
  • PERSPECTIVE
  • SELECTION
  • RETURNS

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