Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5103929 | Research Policy | 2016 | 15 Pages |
Abstract
Our empirical study considers the impact of geography on post-acquisition performance for technological acquisitions. Relying on insights from the transaction costs and international business literatures we suggest that both geographic distance and borders influence post-acquisition innovative performance. Examining the patent portfolios of 3683 high tech acquirers in the period 2000-2012 we support a 'liability of distance' hypothesis and show that every 1000Â km between the target and the acquirer costs as much as 19 lost patent applications. We do not find support for a 'liability of foreignness' hypothesis, however, but show in fact, that else equal, cross-border deals result in 3.15 additional patent applications. For high tech acquirers we find that 'foreignness' appears, therefore, to be more of an 'asset' than a 'liability'. We find that the lion's share of this is attributable to cultural differences.
Keywords
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Killian J. McCarthy, Hendrik Leendert Aalbers,