Knowledge utilisation drivers in technological M&As

Abstract

Several contributions look at the effect of technological M&As on the acquirer's technological performance. The knowledge-based perspective highlights the critical role that the acquirer's target's knowledge absorption plays as the main driver in enhancing post-M&A technological performance. However, absorptive capacity is a rather complex construct, which includes assimilation, utilisation and transformation of the acquired knowledge. In this paper, we focus on knowledge utilisation and investigate two factors whose effects on post-M&A technological performance have been extensively highlighted: technological relatedness and managerial experience. We contribute to the existing literature with a better understanding of the factors underlying the utilisation of the knowledge acquired in M&As. This should help managers to enhance their capacity to manage integration process post-M&As. Our results are based on a cross-sectional data set of 152 biopharmaceutical acquirers that completed at least one M&A between 2001 and 2005.

Keywords:

• mergers and acquisitions
• technological relatedness
• M&A experience
• alliance experience

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes on contributors

Luigi Orsi is a Post Doc Fellow at the Department of Economics and Management, University of Padua, Italy. His scientific interests are in the field of innovation, with primary focus on the themes of patent intelligence and strategic alliances.

Andrea Ganzaroli is a lecturer of Strategic Management and Innovation Management at the University of Milan. He has Ph.D. in management from Rotterdam School of Management. His research examines innovation and governance of open source community.

Ivan De Noni has Ph.D. in Corporate Finance and Management at the University of Milan. He is research fellow researcher at the same university. His research project concerns local and regional Innovation Systems.

Federica Marelli has a Master's Degree in International Economics and Finance at University of Milan. Her research interests are in the field of innovation management, strategic alliances and mergers and acquisitions.

ORCID

Luigi Orsi http://orcid.org/0000-0002-7621-0878

Notes

1. 2 May 2014, 9:54 by R.D. | NEW YORK http://www.economist.com/blogs/freeexchange/2014/05/mergershttp://www.economist.com/blogs/freeexchange/2014/05/mergers.

2. The EU countries plus Switzerland.