Ahuja & Katila (2001)

Question 1

Technological acquisitions and innovation performance of acquiring firms

Answer 1

Obtaining technological know-how and developing technical capabilities are increasingly important motives for acquisitions, and that acquisitions continue to be a popular strategy for corporate growth.

Question 2

Within technological acquisitions,

Answer 2

• the absolute size of the acquired knowledge base enhances innovation performance, while the relative size of the acquired knowledge base reduces innovation output.
• The relatedness of acquired and acquiring knowledge bases has a nonlinear impact on innovation output
• Nontechnological acquisitions do not have a significant effect on subsequent innovation output.

Question 3

Findings:

Answer 3

• Acquisitions have a positive impact on innovation performance (in the chemical industry), but only if the acquisition involves a technological aspect
• Size and relatedness of the acquired knowledgebase determine the impact on innovation performance
• Non-technological acquisitions do not have significant effect on innovation output