ABSTRACT

This chapter focuses on mergers and acquisitions (M&As) and attempts to contribute to the existing literature by providing additional insights to better understand the influence of M&As in boosting firms innovation performance, utilizing quantitative and qualitative measures. Through M&A, firms gain access to external sources of innovation. Research on acquisitions has typically focused on acquisitions' financial performance or organization integration. The research discussed moves beyond that perspective and analyses the innovative performance of the acquiring firms, utilizing quantitative and qualitative measures. Some quantitative and qualitative indicators are used to describe the acquirers modification to their global innovation capacity during the pre- and post-M&A period. The chapter also talks about literature review and theory development. After developing the methodology, data analysis and discussions follow. M&As can be interpreted as attempts portrayed by companies not only to increase control over the external environment but also to improve their knowledge bases by accessing and absorbing knowledge, resources and capabilities from external sources.