Acquisition Integration and Productivity Losses in the Technical Core: Disruption of Inventors in Acquired Companies

Published Online:https://doi.org/10.1287/orsc.1060.0207

References

  • Achilladelis B., Schwarzkopf A., Cines M. A study of innovation in the pesticide industry: Analysis of the innovation record of an industrial sector. Res. Policy (1987) 16(2–4):175–212CrossrefGoogle Scholar
  • Agrawal A., Jaffe J. F., Mandelkar G. N. The post merger performance of acquiring firms: A re-examination of an anomaly. J. Finance (1992) 47:1605–1621CrossrefGoogle Scholar
  • Ahuja G., Katila R. Technological acquisitions and the innovation performance of acquiring firms: A longitudinal study. Strategic Management J. (2001) 22(3):197–220CrossrefGoogle Scholar
  • Albert M. B., Avery D., Narin F., Mcallister P. Direct validation of citation counts as indicators of industrially important patents. Res. Policy (1991) 20(3):251–259CrossrefGoogle Scholar
  • Aley J., Siegel M. First: The fallout from merger mania. Fortune (1998) March 2):26–27Google Scholar
  • Argote L.Organizational Learning: Creating, Retaining, and Transferrring Knowledge (1999) (Kluwer, Norwell, MA) Google Scholar
  • Arora A., Gambardella A. Complementary external linkages: The strategies of the large firms in biotechnology. J. Indust. Econom. (1990) 38(4):361–379CrossrefGoogle Scholar
  • Barney J. B. Returns to bidding firms in mergers and acquisitions: Reconsidering the relatedness hypothesis. Strategic Management J. (1988) 9:71–78CrossrefGoogle Scholar
  • Barney J. B. Firm resources and sustained competitive advantage. J. Management (1991) 17(1):99–120CrossrefGoogle Scholar
  • Baumann R. P., Jackson P., Lawrence J. T.From Promise to Performance (1997) (Harvard Business School Press, Boston, MA) Google Scholar
  • Berkovitch E., Narayanan M. P. Motives for takeovers: An empirical examination. J. Financial Quant. Anal. (1993) 28:347–362CrossrefGoogle Scholar
  • Berman S. L., Down J., Hill C. W. L. Tacit knowledge as a source of competitive advantage in the National Basketball Association. Acad. Management J. (2002) 45(1):13–31CrossrefGoogle Scholar
  • Bleeke J. A., Daniels L. K. After a deal is completed: How far and how fast to move? California Management Rev. (1985) 30(Fall):9–11Google Scholar
  • Bogner W. C., Thomas H., McGee J. A longitudinal study of the competitive positions and entry paths of European firms in the U.S. pharmaceutical market. Strategic Management J. (1996) 17(2):85–107CrossrefGoogle Scholar
  • Brewer M. B. In-group bias in the minimal intergroup situation: A cognitive motivational analysis. Psych. Bull. (1979) 86:307–324CrossrefGoogle Scholar
  • Brown J. S., Duguid P. Knowledge and organization: A social-practice perspective. Organ. Sci. (2001) 12(2):198–213LinkGoogle Scholar
  • Buchholtz A. K., Ribbens B. A., Houle I. T. The role of human capital in postacquisition CEO departure. Acad. Management J. (2003) 46(4):506–525CrossrefGoogle Scholar
  • Buono A. F., Bowditch J. L.The Human Side of Mergers and Acquisitions (1989) (Jossey-Bass, San Francisco, CA) Google Scholar
  • Buono A. F., Bowditch J. L., Lewis J. W. When cultures collide: The anatomy of merger. Human Relations (1985) 38(5):477–500CrossrefGoogle Scholar
  • Calori R., Lubatkin M., Very P. Control mechanisms in cross border acquisitions: An international comparison. Organ. Stud. (1994) 15(3):361–380CrossrefGoogle Scholar
  • Cannella A. A., Hambrick D. C. Effects of executive departures on the performance of acquired firms. Strategic Management J. (1993) 14:137–152CrossrefGoogle Scholar
  • Cartwright S., Cooper C. L.Mergers and Acquistions: The Human Factor (1992) (Butterworth-Heinemann, Oxford, UK) Google Scholar
  • Chatterjee S. Types of synergy and economic value: The impact of acquisitions on merging and rival firms. Strategic Management J. (1986) 7(2):119–139CrossrefGoogle Scholar
  • Chaudhuri S., Tabrizi B. Capturing the real value in high-tech acquisitions. Harvard Bus. Rev. (1999) 77(5):123–130Google Scholar
  • Cockburn I. M., Henderson R. M. Absorptive capacity, coauthoring behavior, and the organization of research in drug discovery. J. Indust. Econom. (1998) 46(2):157–182CrossrefGoogle Scholar
  • Cockburn I. M., Henderson R. M., Stern S. Untangling the origins of competitive advantage. Strategic Management J. (2000) 21(10–11):1123–1145CrossrefGoogle Scholar
  • Cohen M. D., Burkhart R., Dosi G., Edigi M., Marengo L., Warglien M., Winter S. G. Routines and other recurring action patterns of organizations: Contemporary research issues. Indust. Corporate Change (1996) 5(3):653–698CrossrefGoogle Scholar
  • Coff R. W. How buyers cope with uncertainty when acquiring firm in knowledge-intensive industries: Caveat emptor. Organ. Sci. (1999) 10(2):144–161LinkGoogle Scholar
  • Dierickx I., Cool K. Asset stock accumulation and sustainability of competitive advantage. Management Sci. (1989) 35(12):1504–1511LinkGoogle Scholar
  • Dietz J. S., Bozeman B. Academic careers, patents, and productivity: Industry experience as scientific and technical human capital. Res. Policy (2005) 34:349–367CrossrefGoogle Scholar
  • Dosi G. Technological paradigms and technological trajectories: A suggested interpretation of the determinants and directions of technical change. Res. Policy (1982) 11(3):147–162CrossrefGoogle Scholar
  • Drucker P. F. Knowledge-worker productivity: The biggest challenge. California Management Rev. (1999) 41(2):79–94CrossrefGoogle Scholar
  • Edmondson A. C., Bohmer R. M., Pisano G. P. Disrupted routines: Team learning and new technology implementation in hospitals. Admin. Sci. Quart. (2001) 46(4):685–716CrossrefGoogle Scholar
  • Elsass P. M., Veiga J. F. Acculturation in acquired organizations: A force field perspective. Human Relations (1994) 47(4):431–454CrossrefGoogle Scholar
  • Ernst H., Vitt J. The influence of corporate acquisitions on the behavior of key inventors. R&D Management (2000) 30(2):105–119CrossrefGoogle Scholar
  • Frank R. H.Choosing the Right Pond: Human Behavior and the Quest for Status (1985) (Oxford University Press, New York) Google Scholar
  • Galambos L., Sturchio J. L. Pharmaceutical firms and the transition to biotechnology: A study in strategic innovation. Bus. Hist. Rev. (1998) 72(2):250–278CrossrefGoogle Scholar
  • Grabowski H. G., Vernon J. M. Brand loyalty, entry, and price competition in pharmaceuticals after the 1984 Drug Act. J. Law Econom. (1992) 35(2):331–335CrossrefGoogle Scholar
  • Gracomazzi F., Panella C., Pernici B., Sansoni M. Information systems integration in mergers and acquisitions: A normative model. Inform. Management (1997) 32(6):289–302CrossrefGoogle Scholar
  • Grandstand O., Bohlin E., Oskarson C., Sjoberg N. External technology acquisition in large multi-technology corporations. R&D Management (1992) 22(2):111–133CrossrefGoogle Scholar
  • Grant R. M. Toward a knowledge-based theory of the firm. Strategic Management J. (1996) 17(1):109–122CrossrefGoogle Scholar
  • Graves S. B., Langowitz N. S. Innovative productivity and returns to scale in the pharmaceutical industry. Strategic Management J. (1993) 14(8):593–605CrossrefGoogle Scholar
  • Griliches Z. Patent statistics as economic indicators: A survey. J. Econom. Literature (1990) 28(4):1661–1707Google Scholar
  • Griliches Z., Pakes A., Hall B., Dasgupta P., Stoneman P. The value of patents as indicators of inventive activity. Economic Policy and Technical Performance (1986) (Cambridge University Press, Cambridge, MA) 97–124CrossrefGoogle Scholar
  • Hambrick D. C., Cannella A. A. Relative standing: A framework for understanding departures of acquired executives. Acad. Management J. (1993) 36(4):733–762CrossrefGoogle Scholar
  • Haspeslagh P. C., Jemison D. B.Managing Acquisitions: Creating Value Through Corporate Renewal (1991) (Free Press, New York) Google Scholar
  • Haunschild P. R. How much is that company worth: Interorganizational relationships, uncertainty, and acquisition premiums. Admin. Sci. Quart. (1994) 39(3):391–411CrossrefGoogle Scholar
  • Hausmann J., Hall B. H., Griliches Z. Econometric models for count data with an application to the patents: R&D relationships. Econometrica (1984) 52(4):909–938CrossrefGoogle Scholar
  • Hayward M. L. A., Hambrick D. C. Explaining the premiums paid for large acquisitions: Evidence of CEO hubris. Admin. Sci. Quart. (1997) 42(1):103–127CrossrefGoogle Scholar
  • Heckman J. J. Sample selection bias as a specification error. Econometrica (1979) 47(1):153–162CrossrefGoogle Scholar
  • Henderson R., Cockburn I. Measuring competence: Exploring firm effects in pharmaceutical research. Strategic Management J. (1994) 15:63–84CrossrefGoogle Scholar
  • Hirsch P. M. From ambushes to golden parachutes: Corporate takeovers as an instance of cultural framing and institutional integration. Amer. J. Sociol. (1986) 91:800–837CrossrefGoogle Scholar
  • Hitt M. A., Hoskisson R. E., Ireland R. D. Mergers and acquisitions and managerial commitment to innovation in M-Form firms. Strategic Management J. (1990) 11:29–47Google Scholar
  • Hitt M. A., Hoskisson R. E., Ireland R. D., Harrison J. S. Effects of acquisitions on research-and-development inputs and outputs. Acad. Management J. (1991) 34(3):693–706CrossrefGoogle Scholar
  • Hitt M. A., Hoskisson R. E., Johnson R. A., Moesel D. D. The market for corporate control and firm innovation. Acad. Management J. (1996) 39(5):1084–1119CrossrefGoogle Scholar
  • Hoffman C., Hurst N. Gender stereotypes: Perception or rationalization. J. Personality Soc. Psych. (1990) 58:197–208CrossrefGoogle Scholar
  • Homburg C., Bucerius M. A marketing perspective on mergers and acquisitions: How marketing integration affects postmerger performance. J. Marketing (2005) 69(1):95–113CrossrefGoogle Scholar
  • Jarrell G. A., Brickley J. A., Netter J. M. The market for corporate control. J. Econom. Perspect. (1988) 2:49–68CrossrefGoogle Scholar
  • Jemison D. B., Sitkin S. B. Corporate acquisitions: A process perspective. Acad. Management Rev. (1986) 11(1):145–163CrossrefGoogle Scholar
  • Keller R. T. Predictors of the performance of project groups in research-and-development organizations. Acad. Management J. (1986) 29(4):715–726CrossrefGoogle Scholar
  • Kenneth D., Singh H. Acquistion regimes: Managing cultural risk and relative deprivation in corporate acquisitions. Internat. Rev. Strategic Management (1993) 4:227–277Google Scholar
  • Kogut B. Joint ventures and the option to expand and acquire. Management Sci. (1991) 37(1):19LinkGoogle Scholar
  • Kogut B., Zander U. Knowledge of the firm, combinative capabilities and the replication of technology. Organ. Sci. (1992) 3:383–397LinkGoogle Scholar
  • Kramer R. M., Staw B. M., Cummings L. L. Intergroup relations and organizational dilemmas: The role of categorization processes. Research in Organizational Behavior (1991) Vol. 13(JAI Press, Greenwich, CT) 191–228Google Scholar
  • Krishnan H. A., Miller A., Judge W. Q. Diversification and top management team complementarity: Is performance improved by merging similar or dissimilar teams? Strategic Management J. (1997) 18(5):361–374CrossrefGoogle Scholar
  • Larsson R., Finkelstein S. Integrating strategic, organizational, and human resource perspectives on mergers and acquisitions: A case survey of synergy realization. Organ. Sci. (1999) 10(1):1LinkGoogle Scholar
  • Levin R. C., Klevorick A. K., Nelson R. R., Winter S. G. Appropriating the returns from industrial research and development. Brookings Papers on Econom. Activity (1987) 1987(3):783–831CrossrefGoogle Scholar
  • Levinson H. A psychologist diagnoses merger failure. Harvard Bus. Rev. (1970) 48(2):139–147Google Scholar
  • Link A. Acquisitions as sources of technological innovation. Mergers Acquisitions (1988) 23(3):36–39Google Scholar
  • Lubatkin M., Schweiger D., Weber Y. Top management turnover in related M&As: An additional test of the theory of relative standing. J. Management (1999) 25(1):55–73Google Scholar
  • Marks M. L., Mirvis P. Merger syndrome: Stress and uncertainty. Mergers Acquisitions (1985) 20(1):50–55Google Scholar
  • McFadyen M. A., Cannella A. A. Social capital and knowledge creation: Diminishing returns of the number and strength of exchange relationships. Acad. Management J. (2004) 47(5):735–746CrossrefGoogle Scholar
  • McKiernan P., Merali Y. Integrating information systems after a merger. Long Range Planning (1995) 28(4):54–63CrossrefGoogle Scholar
  • Nahavandi A., Malekzadeh A. R. Acculturation in mergers and acquisitions. Acad. Management Rev. (1988) 13(1):79–90CrossrefGoogle Scholar
  • Narin F., Noma E., Perry R. Patents as indicators of corporate technological strength. Res. Policy (1987) 16(2–4):143–155CrossrefGoogle Scholar
  • Nelson R. R., Winter S. G.An Evolutionary Theory of Economic Change (1982) (Belknap Press, Cambridge, MA) Google Scholar
  • Nerkar A., Paruchuri S. Evolution of R&D capabilities: Role of knowledge networks within a firm. Management Sci. (2005) 51(5):771–785LinkGoogle Scholar
  • Nerkar A., Roberts P. W. Technological and product-market experience and the success of new product introductions in the pharmaceutical industry. Strategic Management J. (2004) 25(8–9):779CrossrefGoogle Scholar
  • American Cyanamid agrees to acquire Praxis biologicsNewswire (1989) June 6Google Scholar
  • Nickerson J. A., Zenger T. R. A knowledge-based theory of the firm—The problem-solving perspective. Organ. Sci. (2004) 15(6):617–632LinkGoogle Scholar
  • O’Brian B. Material obsession: Battle over patents pits two oil concerns against one scientist—John Ewen’s molecules are key to future of plastics. Wall Street Journal (1996) March 1Google Scholar
  • O’Reilly C. A., Caldwell D. F., Barnett W. P. Work group demography, social integration, and turnover. Admin. Sci. Quart. (1989) 34(1):21–37CrossrefGoogle Scholar
  • Pelled L. H. Demographic diversity, conflict, and work group outcomes: An intervening process theory. Organ. Sci. (1996) 7(6):615–631LinkGoogle Scholar
  • Pelz D. C., Andrews F. M.Scientists in Organizations: Productive Climates for Research and Development (1976) (University of Michigan Press, Ann Arbor, MI) Google Scholar
  • Pentland B. T. Organizing moves in software-support hot lines. Admin. Sci. Quart. (1992) 37(4):527–548CrossrefGoogle Scholar
  • Pitts R. A. Strategies and structures for diversification. Acad. Management J. (1977) 20(2):197–209CrossrefGoogle Scholar
  • Polanyi M.Personal Knowledge: Towards a Post-Critical Philosophy (1962) (University of Chicago Press, Chicago, IL) . corrected ed.Google Scholar
  • Prabhu J. C., Chandy R. K., Ellis M. E. The impact of acquisitions on innovation: Poison pill, placebo, or tonic? J. Marketing (2005) 69(1):114–130CrossrefGoogle Scholar
  • Chugai completes tender offer for Gen-ProbePR Newswire (1989) Dec. 6Google Scholar
  • Puranam P., Singh H., Zollo M. A bird in the hand or two in the bush? Integration trade-offs in technology-grafting acquisitions. Eur. Management J. (2003) 21(2):179–184CrossrefGoogle Scholar
  • Puranam P., Singh H., Zollo M. Organizing for innovation: Managing the coordination-autonomy dilemma in technology acquisitions. Acad. Management J. (2006) 49(2):263–280CrossrefGoogle Scholar
  • Ranft A. L., Lord M. D. Acquiring new knowledge: The role of retaining human capital in acquisitions of high-tech firms. J. High Tech. Management Res. (2000) 11(2):295–319CrossrefGoogle Scholar
  • Ranft A. L., Lord M. D. Acquiring new technologies and capabilities: A grounded model of acquisition implementation. Organ. Sci. (2002) 13(4):420–441LinkGoogle Scholar
  • Ravenscraft D. J., Long W. F., Kaplan S. N. Paths to creating value in pharmaceutical mergers. Mergers and Productivity (2000) (University of Chicago Press, Chicago, IL) 287–326Google Scholar
  • Ravenscraft D. J., Scherer F. M., Coffee J. C., Lowenstein L., Rose-Ackerman S. Mergers and managerial performance. Knights, Raiders, and Targets (1988) (Oxford University Press, New York) Google Scholar
  • Reed R., Defillippi R. J. Causal ambiguity, barriers to imitation, and sustainable competitive advantage. Acad. Management Rev. (1990) 15(1):88–102CrossrefGoogle Scholar
  • Risberg A. Employee experiences of acquisitions. J. World Bus. (2001) 36(1):58–84CrossrefGoogle Scholar
  • Ruckman K. Technology sourcing through acquisitions: Evidence from the U.S. drug industry. J. Internat. Bus. Stud. (2005) 36(1):89–103CrossrefGoogle Scholar
  • Sales M. A., Mirvis P. H., Kimberly J. R., Quinn R. E. When cultures collide: Issues of acquisition. Managing Organizational Transition (1984) (Richard Irwin, Homewood, IL) 107–133Google Scholar
  • Salter M. S., Weinhold W. A. Diversification via acquisition: Creating value. Harvard Bus. Rev. (1978) 56(4):166–170Google Scholar
  • Schein E. H.Organizational Culture and Leadership (1985) (Jossey-Brass, San Francisco, CA) Google Scholar
  • Schweiger D. M., Denisi A. S. Communication with employees following a merger: A longitudinal-field experiment. Acad. Management J. (1991) 34(1):110–135CrossrefGoogle Scholar
  • Schweiger D. M., Ivancevich J. M., Power F. R. Executive actions for managing human resources before and after acquisition. Acad. Management Executive (1987) 1(2):127–138CrossrefGoogle Scholar
  • Scott Morton F. M. Barriers to entry, brand advertising, and generic entry in the U.S. pharmaceutical industry. Internat. J. Indust. Organ. (2000) 18(7):1085–1104CrossrefGoogle Scholar
  • Shrivastava P. Postmerger integration. J. Bus. Strategy (1986) 7(1):65–77CrossrefGoogle Scholar
  • Siehl C., Smith D., Omura A. After the merger: Should executives stay or go? Executive (1990) 4(1):50–61CrossrefGoogle Scholar
  • Sinetar M. Mergers, morale and productivity. Personnel J. (1981) 60(11):863–868Google Scholar
  • Sirower M. L.The Synergy Trap: How Companies Lose the Acquisition Game (1997) (Free Press, New York) Google Scholar
  • Stephan P. E., Levin S. G.Striking the Mother Lode in Science: The Importance of Age, Place, and Time (1992) (Oxford University Press, New York) Google Scholar
  • Stern S. Do scientists pay to be scientists? Management Sci. (2004) 50(6):835–854LinkGoogle Scholar
  • Sutton R. I. Maintaining norms about expressed emotions: The case of bill collectors. Admin. Sci. Quart. (1991) 36(2):245–268CrossrefGoogle Scholar
  • Swart J., Kinnie N. Sharing knowledge in knowledge-intensive firms. Human Resource Management J. (2003) 13(2):60–75CrossrefGoogle Scholar
  • Szulanski G., Dosi G., Nelson R. R., Winter S. G. Appropriability and the challenge of scope: Banc One routinizes replication. Nature and Dynamics of Organizational Capabilities (1999) (Oxford University Press, New York) 69–98Google Scholar
  • Tajfel H.Social Identity and Intergroup Relations (1982) (Cambridge University Press, Cambridge, MA) Google Scholar
  • Teece D. J., Pisano G., Shuen A. Dynamic capabilities and strategic management. Strategic Management J. (1997) 18(7):509–533CrossrefGoogle Scholar
  • Thomke S., Kuemmerle W. Asset accumulation, interdependence and technological change: Evidence from pharmaceutical drug discovery. Strategic Management J. (2002) 23(7):619–635CrossrefGoogle Scholar
  • Thomke S., Nimgade A. Note on drug development in the United States. (1998) . Harvard Business School Case 9-698-028, Harvard University, Cambridge, MAGoogle Scholar
  • Thompson D. E. Get big enough (but not too big) to source innovation. Res. Tech. Management (2001) 44(6):22–25CrossrefGoogle Scholar
  • Tsui A. S., Egan T. D., O’Reilly C. A. Being different: Relational demography and organizational attachment. Admin. Sci. Quart. (1992) 37(4):549–579CrossrefGoogle Scholar
  • Tyre M. J., von Hippel E. The situated nature of adaptive learning in organizations. Organ. Sci. (1997) 8(1):71–83LinkGoogle Scholar
  • Wagner W. G., Pfeffer J., O’Reilly C. A. Organizational demography and turnover in top-management groups. Admin. Sci. Quart. (1984) 29(1):74–92CrossrefGoogle Scholar
  • Walsh J. P. Top management turnover following mergers and acquisitions. Strategic Management J. (1988) 9(2):173–183CrossrefGoogle Scholar
  • Walsh J. P. Doing a deal: Merger and acquisition negotiations and their impact upon target company top management turnover. Strategic Management J. (1989) 10(4):307–322CrossrefGoogle Scholar
  • Wasserman S., Faust K.Social Network Analysis (1994) (Cambridge University Press, New York) CrossrefGoogle Scholar
  • Wernerfelt B. A resource-based view of the firm. Strategic Management J. (1984) 5(2):171–180CrossrefGoogle Scholar
  • White H. A heteroskedasticity-consistent covariance-matrix estimator and a direct test for heteroskedasticity. Econometrica (1980) 48(4):817–838CrossrefGoogle Scholar
  • Williams K. Y., O’Reilly C. A., Staw B. M., Sutton R. Demography and diversity in organizations: A review of 40 years of research. Research in Organizational Behavior (1998) Vol. 20(JAI Press, Greenwich, CT) 182–203Google Scholar
  • Winter S. G., Teece D. J. Knowledge and competence as strategic assets. The Competitive Challenge: Strategies for Industrial Innovation and Renewal (1987) (Ballinger Publishing Company, Cambridge, MA) 186–219Google Scholar
  • Wysocki B. Why an acquisition? Often it’s the people. Wall Street Journal (1997) October 6Google Scholar
  • Zollo M., Singh H. The impact of knowledge codification, experience trajectories and integration strategies on the performance of corporate acquistions. (1998) . Working paper, The Wharton School, University of Pennsylvania, Philadelphia, PAGoogle Scholar
  • Zollo M., Singh H. Deliberate learning in corporate acquisitions: Post-acquisition strategies and integration capability in U.S. bank mergers. Strategic Management J. (2004) 25(13):1233–1256CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.