Mergers & acquisitions and innovation performance in the telecommunications equipment industry
AbstractThe 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. Copyright 2012 The Author 2011. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Industrial and Corporate Change.
Volume (Year): 21 (2012)
Issue (Month): 2 (April)
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Other versions of this item:
- Gantumur, Tseveen & Stephan, Andreas, 2007. "Mergers & Acquisitions And Innovation Performance In The Telecommunications Equipment Industry," Working Paper Series in Economics and Institutions of Innovation 111, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Tseveen Gantumur & Andreas Stephan, 2007. "Mergers & Acquisitions and Innovation Performance in the Telecommunications Equipment Industry," SFB 649 Discussion Papers SFB649DP2007-051, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Tseveen Gantumur & Andreas Stephan, 2007. "Mergers & Acquisitions and Innovation Performance in the Telecommunications Equipment Industry," Discussion Papers of DIW Berlin 728, DIW Berlin, German Institute for Economic Research.
- Gantumur, Tseveen & Stephan, Andreas, 2011. "Mergers & Acquisitions and Innovation Performance in the Telecommunications Equipment Industry," JIBS Working Papers 2011-5, Jönköping International Business School.
- L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
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- Volodymyr Perederiy, 2007. "Kombinierte Liquiditäts- und Solvenzkennzahlen und ein darauf basierendes Insolvenzprognosemodell für deutsche GmbHs," SFB 649 Discussion Papers SFB649DP2007-060, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
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