nach oben

Small Business Economics

Erschienen in:

27.06.2019

The influence of exploratory versus exploitative acquisitions on innovation output in the biotechnology industry

verfasst von: Stephanie Lange, Marcus Wagner

Erschienen in: Small Business Economics | Ausgabe 2/2021

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

Building on the observable trend toward increasing division of scientific labor in entrepreneurial ecosystems, we investigate the effects of different modes of implementation for external knowledge sourcing such as alliances and acquisitions. More specifically, by estimating a Poisson model based on 951 acquisitions by 209 companies from the biotechnology industry, the study analyzes two unique forms of external knowledge sourcing, namely alliances and acquisitions. In line with theoretical arguments, we find a saturating association of the exploration orientation of acquisitions with exploratory innovation output, while comprehensively controlling for prior exploratory and exploitative acquisitions and alliances, as well as other firm-level and acquisition-level determinants. We also find an inverted U-shaped association between the exploitation orientation of acquisitions and exploitative innovation output. These findings suggest that utilizing dissimilar knowledge sourced through acquisitions seems to have no inherent limitations; however, the inverted U-shaped relationship found for the exploitation orientation of acquisitions and exploitation innovation output indicates that utilizing similar knowledge has limitations and consequently an optimum level. We discuss the implications of this in the context of the knowledge spillover theory of entrepreneurship.

Vorheriger Artikel Knowledge-based service economy and firm entry: an alternative to the knowledge spillover theory of entrepreneurship

Nächster Artikel Taxes, the tax administrative burden and the entrepreneurial life cycle

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Descriptions of the SIC codes are taken from the "Standard Industrial Classification (SIC) System Search" website of the United States Department of Labor.

Figures showing these descriptive illustrations of the variables are available from the authors on request.

Agarwal, R., Audretsch, D., & Sarkar, M. B. (2007). The process of creative construction: knowledge spillovers, entrepreneurship, and economic growth. Strategic Entrepreneurship Journal, 1(3–4), 263–286.

Agarwal, R., Audretsch, D., & Sarkar, M. B. (2010). Knowledge spillovers and strategic entrepreneurship. Strategic Entrepreneurship Journal, 4(4), 271–283.

Ahuja, G., & Katila, R. (2001). Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study. Strategic Management Journal, 22(3), 197–220.

Belderbos, R. (2003). Entry mode, organizational learning, and R&D in foreign affiliates: evidence from Japanese firms. Strategic Management Journal, 24(3), 235–259.

Belderbos, R., Faems, D., Leten, B., & Van Looy, B. (2010). Technological activities and their impact on the financial performance of the firm: exploitation and exploration within and between firms. Journal of Product Innovation Management, 27(6), 869–882.

Berchicci, L. (2013). Towards an open R&D system: internal R&D investment, external knowledge acquisition and innovative performance. Research Policy, 42(1), 117–127.

Bessen, J. (2009). NBER PDP project user documentation: matching patent data to Compustat firms. https://sites.google.com/site/patentdataproject/Home/downloads.

Blindenbach-Driessen, F., & Van den Ende, J. (2014). The locus of innovation: the effect of a separate innovation unit on exploration, exploitation, and ambidexterity in manufacturing and service firms. Journal of Product Innovation Management, 31(5), 1089–1105.

Cassiman, B., Colobo, M. G., Garrone, P., & Veugelers, R. (2005). The impact of M&A on the R&D process: an empirical analysis of the role of technological – and market-relatedness. Research Policy, 34(2), 195–220.

Cefis, E., Marsili, O., & Rigamonti, D. (2015). Industry relatedness and post-acquisition innovative performance: the moderating effects of acquirer’s capabilities and target size. Academy of Management Annual Meeting Proceedings, 1(1), 1–7.

Chiu, Y.-C. (2014). Balancing exploration and exploitation in supply chain portfolios. IEEE Transactions on Engineering Management, 61(1), 18–27.

Cirillo, B., Brusoni, S., & Valentini, G. (2014). The rejuvenation of inventors through corporate spinouts. Organization Science, 25(6), 1764–1784.

Cloodt, M., Hagedoorn, J., & Van Kranenburg, H. (2006). Mergers and acquisitions: their effect on the innovative performance of companies in high-tech industries. Research Policy, 35(5), 642–654.

Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–152.

Colombo, M. G., Grilli, L., & Piva, E. (2006). In search of complementary assets: the determinants of alliance formation of high-tech start-ups. Research Policy, 35(8), 1166–1199.

Colombo, M., Mustar, P., & Wright, M. (2010). Dynamics of science-based entrepreneurship. The Journal of Technology Transfer, 35(1), 1–15.

Colombo, M. G., & Rabbiosi, L. (2014). Technological similarity, post-acquisition R&D reorganization, and innovation performance in horizontal acquisitions. Research Policy, 43(6), 1039–1054.

Cooke, P. (2007). Growth cultures: the global bioeconomy and its bioregions. Abingdon and New York: Routledge.

Das, T. K., & Teng, B.-S. (1996). Risk types and inter-firm alliance structures. Journal of Management Studies, 33(6), 827–843.

Datta, P., & Roumani, Y. (2014). Knowledge-acquisitions and post-acquisition innovation performance: a comparative hazards model. European Journal of Information Systems, 24(2), 202–226.

Deeds, D. L., & Hill, C. W. L. (1996). Strategic alliances and the rate of new product development: an empirical study of entrepreneurial biotechnology firms. Journal of Business Venturing, 11(1), 41–55.

Delerue, H. (2004). Relational risks perceptions in European biotechnology alliances: the effect of contextual factors. European Management Journal, 22(5), 546–556.

Dittrich, K., & Duysters, G. (2007). Networking as a means to strategy change: the case of open innovation in mobile telephony. Journal of Product Innovation Management, 24(6), 510–521.

Dunlap, D., Mc Donough, E. F., III, Mudambi, R., & Swift, T. (2015). Making up is hard to do: Knowledge acquisition strategies and the nature of new product innovation. Journal of Product Innovation Management, 33(4), 472–491.

Dunlap-Hinkler, D., Kotabe, M., & Mudambi, R. (2010). A story of breakthrough versus incremental innovation: corporate entrepreneurship in the global pharmaceutical industry. Strategic Entrepreneurship Journal, 4(2), 106–127.

Dushnitsky, G., & Lenox, M. J. (2005). When do incumbents learn from entrepreneurial ventures? Corporate venture capital and investing firm innovation rates. Research Policy, 34(5), 615–639.

Empson, L. (2001). Fear of exploitation and fear of contamination: impediments to knowledge transfer in mergers between professional service firms. Human Relations, 54(7), 839–862.

Entezarkheir, M., & Moshiri, S. (2017). Mergers and innovation: Evidence from a panel of US firms. Economics of Innovation and New Technology, 1–22.

Faems, D., Van Looy, B., & Debackere, K. (2005). Interorganizational collaboration and innovation: toward a portfolio approach. Journal of Product Innovation Management, 22(3), 238–250.

Fernald, K., Pennings, E., & Claassen, E. (2015). Biotechnology commercialization strategies: risk and return in interfirm cooperation. Journal of Product Innovation Management, 32(6), 971–996.

Gans, J. S., & Stern, S. (2003). The product market and the market for “ideas”: commercialization strategies for technology entrepreneurs. Research Policy, 32(2), 333–350.

George, G., Zahra, S. A., Wheatley, K. K., & Khan, R. (2001). The effects of alliance portfolio characteristics and absorptive capacity on performance: a study of biotechnology firms. The Journal of High Technology Management Research, 12(2), 205–226.

Gilsing, V., Nooteboom, B., Vanhaverbeke, W., Duysters, G., & Van den Oord, A. (2008). Network embeddedness and the exploration of novel technologies: technological distance, betweenness centrality and density. Research Policy, 37(10), 1717–1731.

Greene, W.H. (1994). Accounting for excess zeros and sample selection in Poisson and negative binomial regression models. NYU Stern School of business/Department of Economics 94–10.

Hall, B. H. (1990). The impact of corporate restructuring on industrial research and development. Brookings Papers on Economic Activity, 3, 85–135.

Hall, B.H., Jaffe, A.B., & Trajtenberg, M. (2001). The NBER patent citations data file: lessons, insights and methodological tools. NBER working Paper 8498.

Hand, J. R. M. (2007). Determinants of the round-to-round returns to pre-IPO venture capital investments in U.S. biotechnology companies. Journal of Business Venturing, 22(1), 1–28.

Hill, S. A., & Birkinshaw, J. (2014). Ambidexterity and survival in corporate venture units. Journal of Management, 40(7), 1899–1931.

Hitt, M. A., Hoskisson, R. E., Ireland, R. D., & Harrison, J. S. (1991). Effects of acquisitions on R&D inputs and outputs. Academy of Management Journal, 34(3), 693–706.

Hottenrott, H., & Lopes-Bento, C. (2016). R&D partnerships and innovation performance: can there be too much of a good thing. Journal of Product Innovation Management, 33(6), 773–794.

Jiang, X., & Li, Y. (2009). An empirical investigation of knowledge management and innovative performance: the case of alliances. Research Policy, 38(2), 358–368.

Kale, P., Dyer, J., & Singh, H. (2001). Value creation and success in strategic alliances: alliancing skills and the role of alliance structure and systems. European Management Journal, 19(5), 463–471.

Karamanos, A. G. (2012). Leveraging micro- and macro-structures of embeddedness in alliance networks for exploratory innovation in biotechnology. R&D Management, 42(1), 71–89.

Keil, T., Maula, M., Schildt, H., & Zhara, S. A. (2008). The effect of governance modes and relatedness of external business development activities on innovative performance. Strategic Management Journal, 29(8), 895–907.

Kim, C., & Park, J.-H. (2013). Exploratory search for a high-impact innovation: the role of technological status in the global pharmaceutical industry. R&D Management, 43(4), 394–406.

Kotabe, M., & Swan, K. S. (1995). The role of strategic alliances in high-technology new product development. Strategic Management Journal, 16(8), 621–636.

Koza, M. P., & Lewin, A. Y. (1998). The co-evolution of strategic alliances. Organization Science, 9(3), 255–264.

Laursen, K., Leone, M. I., & Torrisi, S. (2010). Technological exploration through licensing: new insights from the licensee’s point of view. Industrial and Corporate Change, 19(3), 871–897.

Lavie, D., Kang, J., & Rosenkopf, L. (2011). Balance within and across domains: the performance implications of exploration and exploitation in alliances. Organization Science, 22(6), 1517–1538.

Lavie, D., & Rosenkopf, L. (2006). Balancing exploration and exploitation in alliance formation. Academy of Management Journal, 49(4), 797–818.

Lazonick, W., & Tulum, Ö. (2011). US biopharmaceutical finance and the sustainability of the biotech business model. Research Policy, 40(9), 1170–1187.

Lerner, J. (1994). The importance of patent scope: an empirical analysis. RAND Journal of Economics, 25(2), 319–333.

Levinthal, D. A., & March, J. G. (1993). The myopia of learning. Strategic Management Journal, 14(Winter), 95–112.

Lin, H.-E., Mc Donough, E. F., III, Lin, S.-J., & Lin, C. Y.-Y. (2013). Managing the exploitation/exploration paradox: the role of a learning capability and innovation ambidexterity. Journal of Product Innovation Management, 30(2), 262–278.

Lin, L.-H. (2014). Exploration and exploitation in mergers and acquisitions: an empirical study of the electronics industry in Taiwan. International Journal of Organizational Analysis, 22(1), 30–47.

Lin, Z., Yang, H., & Demirkan, I. (2007). The performance consequences of ambidexterity in strategic alliance formations: empirical investigation and computational theorizing. Management Science, 53(10), 1645–1658.

Lin, Z. J., Peng, M. W., Yang, H., & Sun, S. L. (2009). How do networks and learning drive M&As? An institutional comparison between China and the United States. Strategic Management Journal, 30(10), 1113–1132.

Lind, J. T., & Mehlum, H. (2010). With or without U? The appropriate test for a U-shaped relationship. Oxford Bulletin of Economics and Statistics, 72(1), 109–118.

Love, J. H., Roper, S., & Vahter, P. (2014). Learning from openness: the dynamics of breadth in external innovation linkages. Strategic Management Journal, 35(11), 1703–1716.

Lui, S. S. (2009). The roles of competence trust, formal contract, and time horizon in interorganizational learning. Organization Studies, 30(4), 333–353.

Makri, M., Hitt, M. A., & Lane, P. J. (2010). Complementary technologies, knowledge relatedness, and invention outcomes in high technology mergers and acquisitions. Strategic Management Journal, 31(6), 602–628.

March, J. G. (1991). Exploration and exploitation in organizational learning. Organization Science, 2, 71–87.

Mc Carthy, K. J., & Aalbers, H. L. (2016). Technological acquisitions: the impact of geography on post-acquisition innovative performance. Research Policy, 45(9), 1818–1832.

Miller, D. J. (2006). Technological diversity, related diversification, and firm performance. Strategic Management Journal, 27(7), 601–619.

Mishra, S., & Slotegraaf, R. J. (2013). Building an innovation base: exploring the role of acquisition behavior. The Journal of the Academy of Marketing Science, 41(6), 705–721.

Nesta, L., & Saviotti, P. P. (2005). Coherence of the knowledge base and the firm’s innovative performance: evidence from the U.S. pharmaceutical industry. The Journal of Industrial Economics, 53(1), 123–142.

Nielsen, B. B., & Gudergan, S. (2012). Exploration and exploitation fit and performance in international strategic alliance. International Business Review, 21(4), 558–574.

Nooteboom, B., Van Haverbeke, W., Duysters, G., Gilsing, V., & Van den Oord, A. (2007). Optimal cognitive distance and absorptive capacity. Research Policy, 36(7), 1016–1034.

Orsi, L., Ganzaroli, A., De Noni, I., & Marelli, F. (2015). Knowledge utilisation drivers in technological M&As. Technology Analysis & Strategic Management, 27(8), 877–894.

Ozer, M., & Zhang, W. (2015). The effects of geographic and network ties on exploitative and exploratory product innovation. Strategic Management Journal, 36(7), 1105–1114.

Phelps, C. C. (2010). A longitudinal study of the influence of alliance network structure and composition on firm exploratory innovation. Academy of Management Journal, 53(4), 890–913.

Phene, A., Tallman, S., & Almeida, P. (2012). When do acquisitions facilitate technological exploration and exploitation? Journal of Management, 38(3), 753–783.

Pianta, M., & Meliciani, V. (1996). Technological specialization and economic performance in OECD countries. Technology Analysis & Strategic Management, 8(2), 157–174.

Powell, W. W. (1998). Learning from collaboration: knowledge and networks in the biotechnology and pharmaceutical industries. California Management Review, 40(3), 228–240.

Prabhu, J. C., Chandy, R. K., & Ellis, M. E. (2005). The impact of acquisition on innovation: poison pill, placebo or tonic? Journal of Marketing, 69(1), 114–130.

Quah, P., & Young, S. (2005). Post-acquisition management: a phases approach for cross-border M&As. European Management Journal, 23(1), 65–75.

Rothaermel, F. T. (2001a). Incumbent’s advantage through exploitating complementary assets via interfirm cooperation. Strategic Management Journal, 22(6/7), 687–699.

Rothaermel, F. T. (2001b). Complementary assets, strategic alliances, and the incumbent's advantage: an empirical study of industry and firm effects in the biopharmaceutical industry. Research Policy, 30(8), 1235–1251.

Rothaermel, F. T., & Deeds, D. L. (2004). Exploration and exploitation alliances in biotechnology: a system of new product development. Strategic Management Journal, 25(3), 201–221.

Rothaermel, F. T., & Thursby, M. (2007). The nanotech versus the biotech revolution: sources of productivity in incumbent firm research. Research Policy, 36(6), 832–849.

Russo, A., & Vurro, C. (2010). Cross-boundary ambidexterity: balancing exploration and exploitation in the fuel cell industry. European Management Review, 7(1), 30–45.

Sampson, R. C. (2007). R&D alliances and firm performance: the impact of technological diversity and alliance organization on innovation. Academy of Management Journal, 50(2), 364–386.

Saxton, T. (1997). The effects of partner and relationship characteristics on alliance outcomes. Academy of Management Journal, 40 (2), Special research forum on alliances and networks, 443–461.

Schamberger, D. K., Cleven, N. J., & Brettel, M. (2013). Performance effects of exploratory and exploitative innovation strategies and the moderating role of external innovation partners. Industry and Innovation, 20(4), 336–356.

Steensma, H. K., Howard, M., Lyles, M., & Dhanaraj, C. (2012). The compensatory relationship between technological relatedness, social interaction, and knowledge flow between firms. Strategic Entrepreneurship Journal, 6(4), 291–306.

Stettner, U., & Lavie, D. (2014). Ambidexterity under scrutiny: exploration and exploitation via internal organization, alliances, and acquisitions. Strategic Management Journal, 35(13), 1903–1929.

Stuart, T. E. (2000). Interorganizational alliances and the performance of firms: a study of growth and innovation rates in a high-technology industry. Strategic Management Journal, 21(8), 791–811.

Suzuki, J., & Kodama, F. (2004). Technological diversity of persistent innovators in Japan: two case studies of large Japanese firms. Research Policy, 33(3), 531–549.

Thaler, R. H. (1994). The winner’s curse: paradoxes and anomalies of economic life. Princeton: Princeton University Press.

Titus, V., House, J. M., & Covin, J. G. (2014). The influence of exploration on external corporate venturing activity. Journal of Management, 43(5), 1609–1630.

United States Department of Labor (2017). Standard Industrial Classification (SIC) System Search. https://www.osha.gov/pls/imis/sicsearch.html. Accessed 24 July 2017.

Van de Vrande, V. (2013). Balancing your technology-sourcing portfolio: how sourcing mode diversity enhances innovative performance. Strategic Management Journal, 34(5), 610–621.

Van de Vrande, V., Vanhaverbeke, W., & Duysters, G. (2011). Technology in-sourcing and the creation of pioneering technologies. Journal of Product Innovation Management, 28(6), 974–987.

Wadhwa, A., & Basu, S. (2013). Exploration and resource commitments in unequal partnerships: an examination of corporate venture capital investments. Journal of Product Innovation Management, 30(5), 916–936.

Wadhwa, A., Phelps, C., & Kotha, S. (2016). Corporate venture capital portfolios and firm innovation. Journal of Business Venturing, 31(1), 95–112.

Wagner, M. (2011). To explore or to exploit? An empirical investigation of acquisition by large incumbents. Research Policy, 40(9), 1217–1225.

Wang, C.-H., & Hsu, L.-C. (2014). Building exploration and exploitation in the high-tech industry: the role of relationship learning. Technological Forecasting and Social Change, 81, 331–340.

Wubben, E. F. M., Batterink, M., Kolympiris, C., Kemp, R. G. M., & Omta, O. S. W. F. (2015). Profiting from external knowledge: the impact of different external knowledge acquisition strategies on innovation performance. International Journal of Technology Management, 69(2), 139–165.

Yamakawa, Y., Yang, H., & Lin, Z. (2011). Exploration versus exploitation in alliance portfolio: performance implications of organizational, strategic, and environmental fit. Research Policy, 40(2), 287–296.

Yang, H., Zheng, Y., & Zhao, X. (2014). Exploration or exploitation? Small firms’ alliance strategies with large firms. Strategic Management Journal, 35(l), 146–157.

Yin, X., & Shanley, M. (2008). Industry determinants of the “merger versus alliance” decision. Academy of Management Review, 33(2), 473–491.

Zahra, S. A., & George, G. (2002). Absorptive capacity: a review, reconceptualization, and extension. Academy of Management Review, 27(2), 185–203.

Zhang, F., Jiang, G., & Cantwell, J. A. (2015). Subsidiary exploration and the innovative performance of large multinational corporations. International Business Review, 24(2), 224–234.

Zhang, J. (2016). Facilitating exploration alliances in multiple dimensions: the influence of firm technological knowledge breadth. R&D Management, 46(S1), 159–173.

Titel: The influence of exploratory versus exploitative acquisitions on innovation output in the biotechnology industry
verfasst von: Stephanie Lange
Marcus Wagner
Publikationsdatum: 27.06.2019
Verlag: Springer US
Erschienen in: Small Business Economics / Ausgabe 2/2021
Print ISSN: 0921-898X
Elektronische ISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-019-00194-1

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 2/2021

The relationship between origin and performance of innovative start-ups: the role of technological knowledge at founding

How individual cognitions overshadow regulations and group norms: a study of government venture capital decisions

How do country R&D change the allocation of self-employment across different types?

Knowledge-based service economy and firm entry: an alternative to the knowledge spillover theory of entrepreneurship

Have we oversold the Silicon Valley model of entrepreneurship?

Diversity, innovation and entrepreneurship: where are we and where should we go in future studies?

Premium Partner