Choosing the Right Target
Relative preferences for resource similarity and complementarity in acquisition choice
Published on 2. June 2017
Book
Paperback/Softback
60 pages
978-3-330-07218-3 (ISBN)
Description
Corporate acquisition is a popular way for firms to grow and obtain innovative resources. However, we know little about why acquirers choose one firm over another. We capture the influence of similarity and complementarity between acquirers' and target firms' products (current innovative value) and R&D pipelines (future innovative value) on whether a particular target firm is acquired. Insights from the Pharmaceutical industry reveal that acquirers value similarity and complementarity in target firms differently, based on whether the comparison being made is with respect to their products or their R&D pipelines. Regarding their R&D pipelines, acquirers prefer that the target firm has similar, rather than complementarity, resources. However, the opposite is true concerning their own products: acquirers prefer that the target firm has complementarity, versus similar, resources.
More details
Language
English
Product notice
Paperback (trade)
Unsewn / adhesive bound
Dimensions
Height: 220 mm
Width: 150 mm
Thickness: 5 mm
Weight
107 gr
ISBN-13
978-3-330-07218-3 (9783330072183)
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Schweitzer Classification
Persons
Yu Yu received her PhD degree in Marketing from Cornell University, Johnson Graduate School of Management in 2010. She's currently working at AIG Science as a data scientist in New York, NY, USA (2017). Vithala R. Rao is the Deane Malott Professor of Management and Professor of Marketing and Quantitative Methods, Johnson, Cornell University.