Motives of technological acquisitions: Case study of Things Solver and Asseco SEE
DOI:
https://doi.org/10.5937/bizinfo2302075SKeywords:
technological acquisitions, start-up, acquiring company, acquired company, motives of acquisitionsAbstract
The aim of the paper is to analyze the motives for technological acquisitions from the standpoint of the companies involved: technology start-ups and acquiring companies. The paper explains intensive technological acquisitions in the last few years, both in the world and in the Republic of Serbia. The paper uses the case study method, while collecting both primary and secondary data. The primary instrument for primary data collection is the interview with the founder and CEO of the technology start-up company. The research results show that the key motives of the technology start-up are the inflow of capital, access to the acquiring company’s infrastructure, market expansion and increase in the customer base, as well as the management professionalization. The research results also show that the key motives of the acquiring company are to take over the talent, expertise, technology of the target company, improve innovation, as well as strengthen the company’s competitive position.
Downloads
References
Andersson, M. & Xiao, J.(2016). Acquisitions of start-ups by incumbent business, Research Policy, 45(1), 272-290. https://doi.org/10.1016/j.respol.2015.10.002
Baumol, W. (2002). Entrepreneurship, innovation and growth: The David-Goliath symbiosis, Journal of Entrepreneurial Finance, 7(2), 1-10. https://doi.org/10.57229/2373-1761.1087
Bengtsson, L. & Larsson, R. (2012). Researching Mergers & Acquisitions with the Case Study Method: Idiographic Understanding of Longitudinal Integration Processes, CSIR Electronic Working Paper Series, Peper No. 2012/4, Center for Strategic Innovation Studies, Blekinge Institute of Tehnology, pp. 1-10. https://www.bth.se/wp-content/uploads/2018/02/12_wp4_2.pdf
Caviggioli, F. De Marco, A., Scellato, G. and Ughetto, E. (2017). Corporate strategies for technology acquisition: Evidence from patent transactions, Management Decision, 55, 1163-1181
Cefis, E., and Marsili, O. (2015). Crossing the innovation threshold through mergers and acquisitions. Research Policy, 44(3), 698-710, DOI: 10.1016/j.respol.2014.10.010
Chernenko, N., Moiseienko, T., Korohodova, O. & Hlushchenko. Y. (2021). Analysis of mergers and acquisitions between 2009 and 2020, Revista Galega de Economica, 30(4), 1-18. https://doi.org/10.15304/rge.30.4.7558
DePamphilis, D. (2019). Mergers, acquisitions and other restructuring activities, Tenth edition, Elsevier Inc.
Dezi, L., Battisti, E., Ferraris, A., & Papa, A. (2018). The link between mergers and acquisitions and innovation: A systematic literature review. Management Research Review, 41(6), 716-752, https://doi.org/10.1108/MRR-07-2017-0213
Eldar, O., Grennan, J.and Waldock, K. (2023). Common venture capital investors and startup growth, Working Paper No 902/2023, ECGI Working Paper Series in Finance. https://www.ecgi.global/sites/default/files/working_papers/documents/commonventurecapitalinvestorsandstartupgrowth.pdf
Fernandez, S., Triguero, A. and Alfaro-Cortes, E. (2019). M&A effects on innovation and profitability in large European firms. Management Decision, 57(1), 100-114, https://doi.org/10.1108/MD-08-2017-0730
Hennart, J., Majocchi, A. and Hagen, B. (2021). What's so special about born globals, their entrepreneurs or their business model? Journal of International Business Studies, 52, 1665-1694. DOI: 10.1057/s41267-021-00427-0
Kooli, C. and Lock Son, M. (2021). Impact of COVID-19 on Mergers, Acquisitions & Corporate Restructuring. Business, 1, 102-114
Kuzman, T., Kukić, Z., Kovač, A. (2020). Startap skener 2019 – Kako ide startupima u Srbiji? Inicijativa Digitalna Srbija, https://www.dsi.rs/wp-content/uploads/2020/01/Startup-skener_2019_SRB.pdf
Mazars (2022) Investing in CEE inbound M&A report 2021/2022, Mergermarket, https://www.mazars.com/Home/Insights/Latest-insights/Investing-in-CEE-Inbound-M-A-report-2021-2022
Mortara, L. and Ford, S. (2012). Technology Acquisitions. A guided approach to technology acquisition and protection decisions. Institute for Manufacturing, University of Cambridge, Cambridge. https://www.ifm.eng.cam.ac.uk/uploads/Resources/Reports/technology_acquisitions.pdf
Norbäck, P. and Persson , L. (2014). Born to be global and the globalisation process, The World Economy, 37(5), 672-689.
Savović, S., Zlatanović, D., Nikolić, J. (2021). Technology acquisitions as supporting tool for improving innovative potential of companies, Economic Horizons, 23(1), 3-17. doi:10.5937/ekonhor2101003S
Sears, J. (2018). Post-acquisition integrative versus independent innovation: A story of dueling success factors, Research Policy, 47 (9), 1688-1699. https://doi.org/10.1016/j.respol.2018.06.003
Sorensen, J. and Stuart, T.(2000). Aging, obsolescence and organizational innovation, Administrative Science Quarterly, 45(1), 81-112. https://doi.org/10.2307/2666980
Sudarsanam, S. (2003). Creating Value form Mergers and Acquisitions – The Challenges, An Integrated and International Perspective, Prentice Hall.
Teece D. (1986). Profiting from technological innovation, Research Policy, 15(6): 285-305.
Teece, D., Pisano, G. & Shuen, A. (1997). Dynamic capabilities and strategic managemet, Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z
Trueman, C.(September, 2022), Noteworthy tech acquisitions 2022, Computerworld, https://www.computerworld.com/article/3646533/noteworthy-tech-acquisitions-2022.html
Things Solver (2021) https://thingsolver.com/tag/pr/.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 BizInfo (Blace) Journal of Economics, Management and Informatics
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
