Technology-focused Acquisitions

Performance and Functionality as Differentiators

Jan Paul Stein

• Publisher: De Gruyter Oldenbourg
• Year: 2017
• Print ISBN: 9783110559170
• eBook ISBN: 9783110559309
• Edition: 1
• Topic: Business
• Subtopic: Management
• Index: Business

Technology-focused acquisitions are an important complement to the firm's internal product development efforts. There is considerable heterogeneity when comparing individual technology-focused acquisitions – especially with respect to acquisition timing and the deal value.

To resolve some of this heterogeneity the author introduces the novel distinction between performance- and functionality-focused acquisitions. He characterizes this distinction based on a theoretical analysis, a qualitative study, and turns to a sample of acquisitions in the field of artificial intelligence for the quantitative study.

There are two key findings. First, performance-focused acquisitions take place earlier in a target's life cycle than functionality-focused ones. Second, the deal value is – at a comparable stage in a target's life cycle – higher for performance-focused acquisitions.

This thesis is relevant for management scholars and managers alike: Scholars learn about the implications of the distinction between performance- and functionality-focused acquisitions on markets for technology. Managers gain insights into how this distinction may guide their strategic decision making.

Table of contents

• Cover
• Title Page
• Copyright
• Acknowledgements
• Contents
• List of figures
• List of tables
• List of abbreviations
• Zusammenfassung
• Abstract
• 1 Introduction
• 2 Theoretical foundations—Technology-focused acquisitions and strategic decisions
• 3 Performance- and functionality-focus in product development and acquisitions
• 4 Qualitative Study—Acquisitions in the ICT Industry
• 5 Quantitative study—Performance and functionality in AI-related acquisitions
• 6 Conclusion, contributions, and outlook
• Part Appendix
• Bibliography