Differential effects of pre- and post-acquisition R&D expenditures on post-acquisition performance

Son A. Le, Jung Chul Park and Mark Kroll

Journal of Business Research, 2014, vol. 67, issue 2, 92-99

Abstract: Drawing from the behavioral theory of the firm and the resource-based view, we argue that different types of R&D (explorative and exploitative) and the timing of R&D investments (pre- and post-acquisitions) have differential effects on post-acquisition performance. By using a sample of 396 technology acquisitions, we find that pre-acquisition explorative and post-acquisition R&D expenditures are more beneficial for post-acquisition performance than are pre-acquisition exploitative and post-acquisition explorative R&D expenditures. Our results also show that firms investing in explorative R&D in the pre-acquisition stage and then exploitative R&D in the post-acquisition stage have better post-acquisition performance than firms that do otherwise.

Keywords: Acquisition; R&D; Organizational learning; Organizational inertia; Absorptive capacity (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:67:y:2014:i:2:p:92-99

DOI: 10.1016/j.jbusres.2012.11.012

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