CE26 - Innovation, travail

Collaboration Networks and Innovation Capacity in Mergers & Acquisitions – CO-MA

The project builds empirically on four studies organized in three empirical projects, involving a team of French and international researchers coming from different disciplines. The research design rests on in-depth case studies, social network analysis, survey and secondary panel data. The first empirical project covers in-depth case studies of acquisitions in knowledge-intensive sectors and where projected synergy requires a combined innovation capacity. The objective is to identify interactional processes and mechanisms that drive or limit knowledge transfer and joint innovation between individuals in the integrated firms. The second empirical project concerns the analysis of firm-level coordination mechanisms on post-acquisition collaboration and innovation capacity and rests on a large survey on France-based acquisitions. Finally, the third empirical project investigates the influence of firm embeddedness and positions within the ecosystem on post-acquisition innovation performance.

At this stage, the program is in the data collection and analysis stage, and no results can yet been announced.

The Co-MA research program aims to provide answers to numerous calls from the scientific community regarding the need to develop a more integrated and multi-level research approach to study mergers and acquisitions. The Co-MA program brings a fresh look at the integrative and innovative dynamics structuring the results of mergers and acquisitions. The research is also forward-looking insofar as the objective is to develop a dynamic model underpinning the creation of synergies and the capacity for post-acquisition innovation.
The research also has socio-economic and societal implications. The large number of mergers and acquisitions, the overall growth of innovation-driven deals and the persistence of high failure rates of this type of external growth mode create a strong need for a better understanding of the causes of failure and stimulating factors of post-acquisition innovation. As innovation processes place knowledge holders at the center of generating synergies, this also emphasizes the need to understand employee engagement in M&A and to develop an understanding of how these affect employees in their careers, skills development and ways of working. In addition, the identification of processes promoting collaborative innovation, and the way in which they are structured by the environment in which they are part, promises to contribute to a more general understanding of phenomena such as innovation ecosystems or the sharing economy, which deeply structure our societies and economies today and in the future

1. N. Mirc, A network perspective on corporate development activities and portfolios, Symposium on Mergers and Acquisitions, European Academy of Management, June 2020
2. N. Ghaddar, Motives, Process Challenges and Performance Determinants of Innovative Acquisitions: A Review of the Innovation-related M&A Literature, European Academy of Management, June 2020

Submission summary

A major issue attached to M&A is companies’ (lack of) abilities to leverage synergistic value. About one out of two M&A does not achieve the expected value. Research estimates that in half of these cases, organizational- and human-related factors are responsible, and it has been well established that the actual integration of organizations in the post-acquisition period is most critical for M&A performance (Heimeriks et al., 2012; Angwin & Meadows, 2015). Whereas many studies have identified a variety of influential factors, results remain inconclusive and largely isotopic (Steigenberger, 2017; Mirc, Rouzies & Teerikangas, 2017).
What is notably missing is an integrative understanding of the processes and behavior that drive synergy creation as well as employee engagement in this process (Graebner et al., 2017; Bauer & Matzler, 2014). Especially in innovation-driven M&A, individuals within merging firms are key knowledge holders who have to be able and willing to transfer and combine their knowledge in order to leverage innovative capacity. By the same token, the merging firm’s embeddedness in innovative networks are ought to importantly influence innovation outcomes, a topic that has also received little attention in extant research.
The aim of the Co-MA program is to respond to this gap and to identify the processes and mechanisms driving collaboration and joint innovation after M&A. The project develops a new perspective on synergy and innovation capacity in mergers and acquisitions (M&A) by drawing on microfoundations and social network approaches. I argue that people are central drivers of innovative synergy as their interactions shape combinatory processes containing joint innovation outcomes. I further advance that the innovation capacity of merged firms also depends on the how these interactions are embedded in the organizations’ external relationships, the ecosystem.
The project builds empirically on four studies organized in three empirical projects, involving a team of French and international researchers coming from different disciplines. The research design rests on in-depth case studies, social network analysis, survey and secondary panel data. The first empirical project covers in-depth case studies of acquisitions in knowledge-intensive sectors and where projected synergy requires a combined innovation capacity. The objective is to identify interactional processes and mechanisms that drive or limit knowledge transfer and joint innovation between individuals in the integrated firms. The second empirical project concerns the analysis of firm-level coordination mechanisms on post-acquisition collaboration and innovation capacity and rests on a large survey on France-based acquisitions. Finally, the third empirical project investigates the influence of firm embeddedness and positions within the ecosystem on post-acquisition innovation performance.

Project coordination

Nicola Mirc (Toulouse School of Management Research (TSM-Research))

The author of this summary is the project coordinator, who is responsible for the content of this summary. The ANR declines any responsibility as for its contents.

Partner

TSMR Toulouse School of Management Research (TSM-Research)

Help of the ANR 248,757 euros
Beginning and duration of the scientific project: February 2020 - 48 Months

Useful links

Explorez notre base de projets financés

 

 

ANR makes available its datasets on funded projects, click here to find more.

Sign up for the latest news:
Subscribe to our newsletter