Consequences of TMT dynamics: The failure to utilize innovation from technology acquisitions

• Main Authors: HOWARD, Michael D., NANCE, David B., GOMULYA, David M., PARK, Haemin Dennis
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2014
• Subjects: Technology acquisitions; technology transfer; Strategic Management Policy; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5844
• Institution: Singapore Management University

We explore how CEO characteristics affect post-acquisition knowledge transfer outcomes. We posit that a CEO’s technical background and self-importance influence an acquiring firm’s ability to recognize and respond to the Not-Invented-Here (NIH) syndrome often experienced by R&D teams. We find that firms with CEOs holding technology titles but no experience as R&D professionals and those headed by self-important CEOs tend to experience poorer knowledge transfer outcomes. We also find that similarity between technologies of acquiring and target firms and R&D team tenure intensify the effect of CEO’s technical background and self-importance on NIH syndrome.