Why do firms acquire external technologies? Understanding the motivations for technology acquisitions

Why do firms acquire external technologies? Previous research indicates that there are a wide variety of motivations. These include the need to acquire valuable knowledge-based resources, to improve strategic flexibility, to experiment), to overcome organisational inertia, to mitigate risk and uncertainty, to reduce costs and development time in new product development, and the perception that the firm has the absorptive capacity to integrate acquisitions. In this paper we provide an in-depth literature review of the motivations for the acquisition of external technologies by firms. We find that these motivations can be broadly classed into four categories: (1) the development of technological capabilities, (2) the development of strategic options, (3) efficiency improvements, and (4) responses to the competitive environment. In light of this categorisation, we comment on how these different motivations connect to the wider issues of technology acquisition. © 2010 IEEE.

Growth setbacks in new firms

New firms in emerging industries are subject to complex dynamic processes which defy the attempts at prediction embodied in business conjectures. Discontinuous growth is common, but the issue of interruptions in the early growth of new firms has not been adequately addressed in the mainstream literature. We examine the prevalence of interruptions to growth in a cohort study of the growth trajectories of firms founded in 1990, then look to cases studies of individual firms to investigate underlying causes. We find that substantial growth is rare and continuous growth unusual, and that growth interruptions are the result of both internal and external dynamics. The managers of growing firms face shortages of vital resources and significant problems of resource synchronisation and coordination, many of which can lead to what are, in effect, changes of phase state. Meanwhile, the volatile environment of an emerging industry presents particular problems to young firms which have not yet built up reserves to sustain them through short-term crises. However, problem solving by those that survive provides an important source of learning which can underpin their future development. © 2004 Elsevier Ltd. All rights reserved.

New Technology-Based Firms in the New Millennium

Chapter 13 Implementing Open Innovation: Challenges in Linking Strategic and Operational Factors for Large Firms Working with HTSFs

Strategies for designing and developing services for manufacturing firms

Product/service-systems (PSS) are in effect an approach to designing integrated products and services with a focus on both customer and product life cycle activities. A range of service-oriented design strategies can be found in current literature, from product-oriented DfX approaches to more customer-oriented approaches, such as integrated solutions. In this article, design strategies related to different types of services are mapped. Case studies from two industrial companies are used to confront the existing literature in order to improve the understanding of how manufacturing companies may align their product and service development activities with their business strategies. © 2010.

External corporate venture capital investment: Towards a framework for capturing and measuring strategic value

This paper presents the initial results of on-going research in the field of external Corporate Venture Capital (CVC) investments, i.e. equity investments of large corporations in entrepreneurial ventures which originated outside the corporation. The research is motivated by the fact that external CVC plays an increasingly important role within the strategy of corporations. Driven by a general trend towards a more open approach to innovation, companies see particular value in external corporate venturing as a tool to gain, for example, access to complementary technologies and a general window on technology developments. The review of literature in the field of external corporate venturing clearly reveals that theoretical gaps exist in understanding mechanisms for capturing value and measurements of this value. To help close these gaps, the research addresses the underlying question "How do corporations and start-ups capture and measure strategic value through external CVC investments" by using embedded, multiple case studies. Following an initial set of case studies, steps towards the development of a framework for capturing and measuring strategic value from CVC investments are outlined within this paper and the resulting preliminary framework is presented. The paper closes with an outlook on ongoing and future research steps. © 2009 PICMET.

Shortening the decision distance: Selecting decision aids for improved technology investment performance

Deciding which technology to invest in is a recurring issue for technology managers, and the ability to successfully identify the right technology can be a make or break decision for a company. The effects of globalisation have made this issue even more imperative. Not only do companies have to be competitive by global standards but increasingly they have to source technological capabilities from overseas as well. Technology managers already have a variety of decision aids to draw upon, including valuation tools, for example DCF and real options; decision trees; and technology roadmapping. However little theory exists on when, where, why or even how to best apply particular decision aids. Rather than developing further techniques, this paper reviews the relevance and limitations of existing techniques. This is drawn from an on going research project which seeks to support technology managers in selecting and applying existing decision aids and potentially in the design of future decision aids. It is intended that through improving the selection of decision aids, decision performance can be increased, leading to more effective allocation of resources and hence competitive advantage. (c) 2006 PICMET.