Pre-acquisition Inter-organisational Relationships and Post-acquisition Innovation Performance

231 Pages·2016·1.14 MB·English

Pre-acquisition Inter-organisational
Relationships and Post-acquisition
Innovation Performance
A thesis submitted to The University of Manchester for the degree of Doctor
of Philosophy in the Faculty of Humanities

2016

Tamanna Tasnim Khan

Alliance Manchester Business School
Table of Contents

List of Tables….…………………...…………………………………...……7
List of Figures…………………….……………..…….…………..………..10
Abstract...………………………………………..…….………….…...........11
Declaration….…………….……………………..….……………................12
Copyright Statement ………………….…………………………………...13
Acknowledgement…...……………………………………….…………….14
1. Chapter One: Introduction ..................................................... 15

1.1 Introduction ................................................................................................................ 15
1.2 Rethinking the Knowledge Based View of the Firm with Respect to Mergers and
Acquisitions ...................................................................................................................... 18
1.3 Pre-acquisition Inter-organisational Relationships .................................................... 20
1.4 Testing the Theoretical Model: Pre-acquisition Inter-organisational Relationships and
Post-acquisition Innovation Performance ........................................................................ 22
1.5 Overview of Methods and Results ............................................................................. 25
1.6 Implications of this Dissertation ................................................................................. 26
2. Chapter Two: A Literature Review........................................ 29

2.1 Introduction ................................................................................................................ 29
2.2 Accumulating Pre-acquisition Inter-organisational Relationship through the Lens of
Strategic Management Theories ....................................................................................... 30
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2.3 Alliances and M&As in the Framework of the Knowledge Based View (KBV) of the
Firm .................................................................................................................................. 32
2.3.1 Knowledge and Absorptive Capacity .................................................................. 34
2.3.2 Absorptive Capacity and Performance ................................................................ 35
2.4 Accumulating Pre-acquisition Alliances and their Effect on Post-acquisition
Performance Research ...................................................................................................... 37
2.4.1 Determinant of Post-acquisition Performance for the Cases with Pre-acquisition
Alliances ....................................................................................................................... 38
2.4.1.1 Strength of Ties in Different Pre-acquisition Alliances............................ 40
2.4.1.2 Cross-border Alliances ............................................................................. 41
2.5 Research Gaps ............................................................................................................ 41
2.6 Research Model .......................................................................................................... 48
2.6.1 Knowledge Motivation ........................................................................................ 50
2.6.2 Knowledge Relatedness ....................................................................................... 51
2.6.3. Knowledge and Innovation Performance ........................................................... 55
3. Chapter Three: Pre-acquisition Alliances Motivated by

Exploration and Exploitation and Post-acquisition Innovation
Outcome .......................................................................................... 57

3.1 Introduction ................................................................................................................ 57
3.2 Theory and Hypotheses Development ....................................................................... 58
3.2.1 Knowledge Access ............................................................................................... 59
3.2.2 Knowledge Motivations ....................................................................................... 61
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4. Chapter Four: Knowledge Relatedness in Pre-acquisition

Alliances and Post-acquisition Innovation Outcome ................. 64

4.1 Introduction ................................................................................................................ 64
4.2 Theory and Hypotheses Development ....................................................................... 64
4.2.1 Technology Similarities and Innovation Performance: ....................................... 66
4.2.2 Technology Complementarities and Innovation Performance: ........................... 68
5. Chapter Five: Data Collection, Methods and

Measurements................................................................................. 71

5.1 Introduction ................................................................................................................ 71
5.2 Methods ...................................................................................................................... 72
5.2.1 Assumptions: Unconfoundedness and Common Support ................................... 76
5.2.2 Different Methods for Estimating Treatment Effect............................................ 78
5.3 Databases .................................................................................................................... 81
5.3.1 ThomsonONE.com .............................................................................................. 81
5.3.2 SDC Platinum ...................................................................................................... 82
5.3.3 WRDS-CRSP/Compustat Merged (CCM) .......................................................... 83
5.3.4 DataStream........................................................................................................... 83
5.3.5 United States Patent and Trademark Office (USPTO) ........................................ 84
5.3.6 Business Wire News through Factiva .................................................................. 84
5.4 Sample ........................................................................................................................ 84
5. 5 Measures: ................................................................................................................... 92
5.5.1 Dependent Variables: ........................................................................................... 92
5.5.2 Independent Variables ......................................................................................... 95
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5.5.3 Control Variables ............................................................................................... 100
6. Chapter Six: Results ............................................................... 104

6.1 Introduction .............................................................................................................. 104
6.2 Description of the Sample ........................................................................................ 104
6.2.1 Acquisitions both with and without Pre-acquisition Alliances (Total Sample) . 104
6.2.2 Acquisitions without any Pre-acquisition Alliances .......................................... 109
6.2.3 Acquisitions with Pre-acquisition Alliances ...................................................... 112
6.3 Correlation ................................................................................................................ 115
6.4 Pre-acquisition Alliances and Post-acquisition Innovation Outcome ...................... 130
6.4.1 Percentage Change in R&D Intensity in Testing H1 ......................................... 131
6.4.2 Percentage Change in R&D Productivity in Testing H1 ................................... 133
6.4.3 Percentage Change in Patents in Testing H1 ..................................................... 134
6.4.3 Total Patents in Testing H1 ............................................................................... 135
6.5 Pre-acquisition Exploratory and Exploitation Alliances and Post-acquisition
Innovation Outcome ....................................................................................................... 140
6.5.1 Percentage Change in R&D Intensity in Testing H2 ......................................... 141
6.5.2 Percentage Change in R&D Productivity in Testing H2 ................................... 142
6.5.3 Percentage Change in Patents in Testing H2 ..................................................... 142
6.5.4 Total Patents in Testing H2 ............................................................................... 143
6.6 Knowledge Relatedness in Acquisitions with Pre-Acquisition Alliances and
Acquisitions without Pre-acquisition Alliances and its Effect on Innovation Performance
........................................................................................................................................ 149
6.6.1 Percentage Change in R&D intensity in testing H3 and H4 .............................. 150
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6.6.2 Percentage Change in R&D Productivity in Testing H3 and H4 ...................... 152
6.6.3 Percentage Change in Patents in Testing H3 and H4 ........................................ 154
6.7.4 Total Patents in Testing H3 and H4 ................................................................... 156
7. Chapter Seven: Discussion .................................................... 168

7.1 Introduction .............................................................................................................. 168
7.2 Theoretical Insights .................................................................................................. 168
7.3 Contribution to Method ............................................................................................ 174
8. Chapter Eight: Conclusion .................................................... 176

8.1 Introduction .............................................................................................................. 176
8.2 Study Limitations ..................................................................................................... 177
8.3 Implication of the Research ...................................................................................... 179
8.4 Implications for Practitioners ................................................................................... 180
References ..................................................................................... 185

Appendix…………………………………………………..…….202

Word count: 62,450

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List of Tables:
Table 5-1: Yearly distribution of total acquisitions and acquisition of alliance partners in
high technology industries, 1990-2008. ............................................................................... 88
Table 5-2: Classification of patent classes into technological categories and sub-categories
.............................................................................................................................................. 98
Table 6-1: Sample description (acquisition with and without pre-acquisition alliances) .. 108
Table 6-2: Sample description (acquisitions without pre-acquisition alliances) ............... 111
Table 6-3: Sample description (acquisitions with pre-acquisition alliances)..................... 114
Table 6-4: Pairwise correlations for all variables ............................................................. 117
Table 6-5: Pairwise correlations for all variables in sample of acquisition without any pre-
acquisition alliances ........................................................................................................... 122
Table 6-6: Pairwise correlations for all variables in sample of acquisition with pre-
acquisition alliances ........................................................................................................... 123
Table 6-7: Average treatment effects on the treated (ATET) for testing H1: Inverse
probability weighted regression adjustment with percentage change in R&D intensity ... 136
Table 6-8: Average treatment effects on the treated (ATET) for testing H1: Inverse
probability weighted regression adjustment with percentage change in R&D productivity
............................................................................................................................................ 137
Table 6-9: Average treatment effects on the treated (ATET) for testing H1: Inverse
probability weighted regression adjustment with percentage change in patents ............... 138
Table 6-10: Average treatment effects on the treated (ATET) for testing H1: Inverse
probability weighted regression adjustment with total patents .......................................... 139
Table 6-11: Testing H2: Ordinary least squares regressions analysis of change in R&D-
intensity .............................................................................................................................. 145
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Table 6-12: Testing H2: Ordinary least squares regressions analysis of change in R&D-
productivity ........................................................................................................................ 146
Table 6-13: Testing H2: Ordinary least squares regressions analysis of change in patents
............................................................................................................................................ 147
Table 6-14: Testing H2: Standard negative binomial regression (patents) ........................ 148
Table 6-15: Average treatment effects on the treated (ATET) with technology similarity:
Inverse probability weighted regression adjustment with percentage change in R&D
intensity .............................................................................................................................. 158
Table 6-16: Average treatment effects on the treated (ATET) with technology similarity:
Inverse probability weighted regression adjustment with percentage change in R&D
productivity ........................................................................................................................ 159
Table 6-17: Average treatment effects on the treated (ATET) with technology similarity:
Inverse probability weighted regression adjustment with percentage change in patents ... 160
Table 6-18: Average treatment effects on the treated (ATET) with technology
complementarity: Inverse probability weighted regression adjustment with percentage
change in R&D intensity .................................................................................................... 161
Table 6-19: Average treatment effects on the treated (ATET) with technology
complementarity: Inverse probability weighted regression adjustment with percentage
change in R&D productivity .............................................................................................. 162
Table 6-20: Average treatment effects on the treated (ATET) with technology
complementarity: Inverse probability weighted regression adjustment with percentage
change in patents ................................................................................................................ 163
Table 6-21: Average treatment effects on the treated (ATET) with knowledge relatedness:
Inverse probability weighted regression adjustment with percentage change in R&D
intensity .............................................................................................................................. 164
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Table 6-22: Average treatment effects on the treated (ATET) with knowledge relatedness:
Inverse probability weighted regression adjustment with percentage change in R&D
productivity ........................................................................................................................ 165
Table 6-23: Average treatment effects on the treated (ATET) with knowledge relatedness:
Inverse probability weighted regression adjustment with percentage change in patents ... 166
Table 6-24: Average treatment effects on the treated (ATET) with knowledge relatedness:
Inverse probability weighted regression adjustment with total patents ............................. 167

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Table of Figures
Figure 2-1: Research model ................................................................................................. 48
Figure 5-1: Sampling method.............................................................................................. 91
Figure 6-1: Distribution of acquisition according to acquirer nation ................................. 105
Figure 6-2: Distribution of acquirer and targets' industry sector ....................................... 107

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