How Do Mutual Dependence and Power Imbalance Condition the Effects of Technological Similarity on Post-Acquisition Innovation Performance Over Time?
British Journal of Management, Forthcoming
Posted: 10 Nov 2021 Last revised: 21 Jan 2022
Date Written: November 10, 2021
This study investigates how mutual dependence and power imbalance, which have been differentiated by the recent studies adopting the theoretical lens of resourcedependencetheory (RDT)as two distinct forms of interdependence, change the effect of technological similarity between the acquiring firm and target firm on post-acquisition innovation across times. The analysis of panel data on merger and acquisitions (M&As)undertaken by the US firms reveals that in the short-run mutual dependence strengthens the effect of technological similarity on post-acquisition innovation, whereas power imbalance weakens it. However, the effect of mutual dependence persists over time, while that of power imbalance declines over time. These findings extend the RDTto the context of technology acquisition and innovation and offer important implications for research and practice.
Keywords: Resource dependence, mutual dependence, power imbalance, acquisitions, technological similarity, innovation performance, M&As
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