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

K. Hussinger

doi:10.1016/j.technovation.2009.07.006

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

K. Hussinger^*

^*Corresponding author for this work

Organisation,Strategy & Entrepreneurship

Research output: Contribution to journal › Article › Academic › peer-review

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 language	English
Pages (from-to)	57-64
Number of pages	8
Journal	Technovation
Volume	30
Issue number	1
DOIs	https://doi.org/10.1016/j.technovation.2009.07.006
Publication status	Published - 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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10.1016/j.technovation.2009.07.006

Cite this

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title = "On the importance of technological relatedness: SMEs versus large acquisition targets",

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. ",

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AB - 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.

KW - M&A

KW - Technological proximity

KW - SMEs

KW - RESOURCE-BASED VIEW

KW - R-AND-D

KW - COMPETITIVE ADVANTAGE

KW - INNOVATION

KW - FIRMS

KW - PERFORMANCE

KW - DIVERSIFICATION

KW - PERSPECTIVE

KW - SELECTION

KW - RETURNS

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DO - 10.1016/j.technovation.2009.07.006

M3 - Article

SN - 0166-4972

VL - 30

SP - 57

EP - 64

JO - Technovation

JF - Technovation

IS - 1

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