Technology-Focused Acquisitions: Performance and Functionality as Differentiators

By Jan Paul Stein

Technology-focused acquisitions are an important complement to the firm's internal product development efforts. There is considerable heterogeneity when comparing individual technology-focused acquisitions - especially with respect to acquisition timing and the deal value.

To resolve some of this heterogeneity the author introduces the novel distinction between performance- and functionality-focused acquisitions. He characterizes this distinction based on a theoretical analysis, a qualitative study, and turns to a sample of acquisitions in the field of artificial intelligence for the quantitative study.

There are two key findings. First, performance-focused acquisitions take place earlier in a target's life cycle than functionality-focused ones. Second, the deal value is - at a comparable stage in a target's life cycle - higher for performance-focused acquisitions.

This thesis is relevant for management scholars and managers alike: Scholars learn about the implications of the distinction between performance- and functionality-focused acquisitions on markets for technology. Managers gain insights into how this distinction may guide their strategic decision making.

• Format: Hardcover
• Language: English
• ISBN: 311055917X
• ISBN13: 9783110559170
• Release Date: July 2017
• Publisher: de Gruyter Oldenbourg
• Length: 228 Pages
• Weight: 1.25 lbs.
• Dimensions: 0.6" x 6.7" x 9.6"
• Grade Range: Postsecondary