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Transcending Technological Innovation: The Impact Of Acquisitions On Entrepreneurial Technical Organizations, Bruce Crochetiere

Walden Dissertations and Doctoral Studies

Technology firms with substantial cash reserves acquire smaller entrepreneurial firms for diversification. In 2006, 3 large firms acquired 28 organizations, with the combined deals exceeding {dollar}4.7 billion. The problem addressed in this study is that new start-up companies with innovative ideas may not mature when they are acquired by larger companies and do not fully articulate potential industry-transcending innovation. This is important because the unsuccessful integration of an acquisition can dismantle innovation and compromises economic inventiveness. Drawing from the disruptive innovation and the resource-based theories, the purpose of the quasi-experimental study was to examine the impact of acquisition by larger …