IDEAS home Printed from https://ideas.repec.org/a/oup/indcch/v21y2012i2p277-314.html
   My bibliography  Save this article

Mergers & acquisitions and innovation performance in the telecommunications equipment industry

Author

Listed:
  • Tseveen Gantumur
  • Andreas Stephan

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. Copyright 2012 The Author 2011. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Suggested Citation

  • Tseveen Gantumur & Andreas Stephan, 2012. "Mergers & acquisitions and innovation performance in the telecommunications equipment industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 21(2), pages 277-314, April.
    • Handle: RePEc:oup:indcch:v:21:y:2012:i:2:p:277-314
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/icc/dtr052
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Febi Jensen & Hans Lööf & Andreas Stephan, 2020. "New ventures in Cleantech: Opportunities, capabilities and innovation outcomes," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 902-917, March.
    2. Galina Besstremyannaya & Richard Dasher & Sergei Golovan, 2018. "Growth through acquisition of innovations," Working Papers w0247, New Economic School (NES).
    3. Omoye, A. S. & Aniefor, S .J., 2016. "Mergers and Acquisitions: The Trend in Business Environment in Nigeria," Accounting and Finance Research, Sciedu Press, vol. 5(2), pages 1-10, May.
    4. repec:hum:wpaper:sfb649dp2007-060 is not listed on IDEAS
    5. Mathur MAYANK, 2020. "Macroeconomic View of Mergers and Acquisitions in the Technology Industry," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 147-155.
    6. Perederiy, Volodymyr, 2007. "Kombinierte Liquiditäts- und Solvenzkennzahlen und ein darauf basierendes Insolvenzprognosemodell für deutsche GmbHs," SFB 649 Discussion Papers 2007-060, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    7. Andreas Stephan, 2014. "Are public research spin-offs more innovative?," Small Business Economics, Springer, vol. 43(2), pages 353-368, August.
    8. Elena Cefis & Ángela Triguero, 2016. "Make, Buy, or Both: The Innovation Sourcing Strategy Dilemma after M&A," Growth and Change, Wiley Blackwell, vol. 47(2), pages 175-196, June.
    9. Torsten Gerpott, 2009. "Forschung & Entwicklung und technologieorientierte Unternehmensakquisitionen," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 20(1), pages 9-41, May.
    10. Kaufmann, Mattheo & Schiereck, Dirk, 2023. "Acquiring for innovation: Evidence from the U.S. technology industry," Journal of Economic Dynamics and Control, Elsevier, vol. 152(C).
    11. Park, Sungwook & Kwon, Youngsun, 2023. "Disentangling the effects on OTT platform performance of three strategies: Pricing, M&As, and content investments," Telecommunications Policy, Elsevier, vol. 47(8).
    12. Galina Besstremyannaya & Richard Dasher & Sergei Golovan, 2019. "Growth through acquisition of innovations," Working Papers w0247, Center for Economic and Financial Research (CEFIR).

    More about this item

    JEL classification:

    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:indcch:v:21:y:2012:i:2:p:277-314. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/icc .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.