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.

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.

An information oriented framework for relating IS/IT resources and business value

Several studies have highlighted the importance of information and information quality in organisations and thus information is regarded as key determinant for the success and organisational performance. At the same time, there are numerous studies, frameworks and case studies examining the impact of information technology and systems to business value. Recently, several studies have proposed maturity models for information management capabilities in the literature, which claim that a higher maturity results in a higher organizational performance. Although these studies provide valuable information about the underlying relations, most are limited in specifying the relationship in more detail. Furthermore, most prominent approaches do not or at least not explicitly consider information as important influencing factor for organisational performance. In this paper, we aim to review selected contributions and introduce a model that shows how IS/IT resources and capabilties could be interlinked with IS/IT utilization, organizational performance and business value. Complementing other models and frameworks, we explicitly consider information from a management maturity, quality and risk perspective. Moreover, the paper discusses how each part of the model can be assessed in order to validate the model in future studies.

Commercializing a disruptive technology based upon university ip through open innovation

This paper discusses the use of a university spin-out firm to bring a potentially disruptive technology to market. The focus for discussion is how a spin-out can build a technology ecosystem of providers of complementary resources to enable partner organizations to build competence in a novel and potentially disruptive technology. The paper uses the illustrative case of Cambridge Display Technology Ltd (CDT) to consider these issues from the perspective of the literature on open innovation (with particular emphasis on the role of partnerships between start-ups and established firms), the commercialization of university IP, and the commercialization of disruptive technologies. © World Scientific Publishing Company.