TY - JOUR
T1 - Market-Driven Technological Innovation Through Acquisitions
T2 - The Moderating Effect of Firm Size
AU - Lee, Jongkuk
AU - Kim, Minyoung
N1 - Publisher Copyright:
© 2014, © The Author(s) 2014.
PY - 2016/11/1
Y1 - 2016/11/1
N2 - This study is an effort to reveal market-driven innovation via acquisitions. By differentiating the organizational process of resource integration pertaining to market- versus technology-driven innovation via acquisitions, we show that product market relatedness and technology relatedness have differential effects on postacquisition innovation performance, depending on the size of the acquirer. Our analysis of acquisitions in high-tech industries indicates that larger firms maximize their postacquisition technological innovation performance at a lower level of technology relatedness and, in contrast, at a higher level of product market relatedness, whereas the opposite is true for smaller firms. This study contributes to the acquisitions research by identifying (a) market-driven innovation via acquisitions and (b) different mechanisms through which product market and technological resources affect postacquisition technological innovation.
AB - This study is an effort to reveal market-driven innovation via acquisitions. By differentiating the organizational process of resource integration pertaining to market- versus technology-driven innovation via acquisitions, we show that product market relatedness and technology relatedness have differential effects on postacquisition innovation performance, depending on the size of the acquirer. Our analysis of acquisitions in high-tech industries indicates that larger firms maximize their postacquisition technological innovation performance at a lower level of technology relatedness and, in contrast, at a higher level of product market relatedness, whereas the opposite is true for smaller firms. This study contributes to the acquisitions research by identifying (a) market-driven innovation via acquisitions and (b) different mechanisms through which product market and technological resources affect postacquisition technological innovation.
KW - firm size
KW - market-driven innovation
KW - postacquisition technological innovation performance
KW - product market relatedness
KW - technology relatedness
KW - technology-driven innovation
UR - http://www.scopus.com/inward/record.url?scp=84988928121&partnerID=8YFLogxK
U2 - 10.1177/0149206314535439
DO - 10.1177/0149206314535439
M3 - Article
AN - SCOPUS:84988928121
SN - 0149-2063
VL - 42
SP - 1934
EP - 1963
JO - Journal of Management
JF - Journal of Management
IS - 7
ER -