Effects of Firm R&D Investment and Environment on Acquisition Likelihood
R&D investments contribute to the development of firm technology resources, and the possession of such resources often increases a firm's attractiveness as a potential acquisition target. However, the value ascribed to a firm's technology resources by would-be acquirers may be moderated by its industry's environmental characteristics. Using data from 2886 firms, we find that investments in R&D predict acquisition likelihood and that R&D investments are most strongly associated with acquisition of firms under conditions of high environmental munificence and dynamism. Theoretical and managerial implications are discussed. Copyright Blackwell Publishing Ltd 2006.
Year of publication: |
2006
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Authors: | Heeley, Michael B. ; King, David R. ; Covin, Jeffrey G. |
Published in: |
Journal of Management Studies. - Wiley Blackwell, ISSN 0022-2380. - Vol. 43.2006, 7, p. 1513-1535
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Publisher: |
Wiley Blackwell |
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