Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 16, 2018 erstellt
Description:
We introduce a novel categorization of technology-focused acquisitions based on how a target's technology relates to an acquirer's existing products. Specifically, we distinguish between acquisitions aimed at improving product performance and those that shall add new functionality to the acquirer's products. Based on an analysis of uncertainty in the combined innovation and acquisition process we formulate hypotheses on how this categorization relates to various dimensions of target maturity. Using a unique dataset of 215 acquisitions in the field of artificial intelligence, we find clear evidence that targets in performance-focused acquisitions are younger, smaller, and less likely to have a marketable product than those in functionality-focused acquisitions. We derive implications for managers, and suggest that the study of markets for technology should be conditioned on the distinction between performance- and functionality-focused acquisitions