-
Views
-
Cite
Cite
Tseveen Gantumur, Andreas Stephan, Mergers & acquisitions and innovation performance in the telecommunications equipment industry, Industrial and Corporate Change, Volume 21, Issue 2, April 2012, Pages 277–314, https://doi.org/10.1093/icc/dtr052
- Share Icon Share
Abstract
The worldwide telecommunications equipment industry has experienced an enormous number of mergers and acquisitions (M&A). This article examines the innovation determinants of M&A activity and the consequences of M&A on technological potential and innovation performance. We extend the resource-based theory in elucidating external technology sourcing and provide empirical evidence on the keen reliance of the equipment firms on M&A as a technology sourcing strategy for the period 1988–2004. Employing the matching propensity score approach, this study provides evidence that mergers realize a significant growth in the innovation performance of firms. The postmerger innovation performance, in turn, is driven by both the prior success of in-house R&D commitment and the deterioration of internal technological capabilities at acquiring firms.