Technologyfocused Acquisitions Performance And Functionality As Differentiators Jan Paul Stein by Jan Paul Stein 9783110562095, 311056209X instant download after payment.

Technology-focused acquisitions are an important complement to the firm’s internal product development efforts. There is considerable heterogeneity when comparing individual technology-focused acquisitions – especially with respect to acquisition timing and the deal value.

To resolve some of this heterogeneity the author introduces the novel distinction between performance- and functionality-focused acquisitions. He characterizes this distinction based on a theoretical analysis, a qualitative study, and turns to a sample of acquisitions in the field of artificial intelligence for the quantitative study.

There are two key findings. First, performance-focused acquisitions take place earlier in a target’s life cycle than functionality-focused ones. Second, the deal value is – at a comparable stage in a target’s life cycle – higher for performance-focused acquisitions.

This thesis is relevant for management scholars and managers alike: Scholars learn about the implications of the distinction between performance- and functionality-focused acquisitions on markets for technology. Managers gain insights into how this distinction may guide their strategic decision making.

• Highlights the role of risk and uncertainty in acquisition decision making


• Provides a framework for shareholders of acquisition targets for evaluating strategic options regarding an acquisition or a continued presence as a standalone entity