Document Type
Article
Language
eng
Format of Original
24 p.
Publication Date
2006
Publisher
Wiley
Source Publication
Journal of Management Studies
Source ISSN
0022-2380
Abstract
R&D investments contribute to the development of firm technology resources, and the possession of such resources often increases a firm’s attractiveness as a potential acquisition target. However, the value ascribed to a firm’s technology resources by would-be acquirers may be moderated by its industry’s environmental characteristics. Using data from 2886 firms, we find that investments in R&D predict acquisition likelihood and that R&D investments are most strongly associated with acquisition of firms under conditions of high environmental munificence and dynamism. Theoretical and managerial implications are discussed.
Recommended Citation
Heeley, Michael; King, David R.; and Covin, Jeffrey, "R&D Investment Level and Environment as Predictors of Firm Acquisition" (2006). Management Faculty Research and Publications. 24.
https://epublications.marquette.edu/mgmt_fac/24
Comments
Published version. Journal of Management Studies, Vol. 43 No. 7 (2006): 1513-1536. DOI. © 2006 Wiley. Used with permission.
David R. King was affiliated with the U.S. Air Force at the time of publication.