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The purpose of this study is to investigate the effects of open innovation, especially focusing on technological M&A, on subsequent innovation and changes to the firm’s core technological portfolio.

The study suggests three types of core technological areas, based on prior focus and experience in technological categories. These are 1) the existing core area, in which the acquirer firm retains its knowledge and expertise, 2) the enhanced core area, where knowledge and expertise in the acquirer firm’s insufficient areas are strengthened, and 3) the new core area, i.e. new knowledge fields in which the acquirer firm ventures into. The study then analyzes the effects of two key knowledge characteristics of the target firm, similarity and complementarity, on post-M&A innovation outcomes in each of the three core technological areas.

The results confirm that while none of the investigated knowledge characteristics of the target firm is advantageous for post-M&A innovation outcomes in existing core areas, similarity of the target firm does facilitate post-M&A innovation outcomes in enhanced core areas. Moreover, the results confirm that complementarity of the target firm is beneficial for post-M&A innovation outcomes in new core areas.

The study explains the reconfiguration mechanism of a firm’s core technological portfolio. It also suggests an extended framework to analyze innovation outcomes in more detail. Moreover, the study helps to explain why most M&As result in failure.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Firms need to be competent in different core technological areas to innovate and remain competitive. External knowledge and expertise through M&A can help supplement current capabilities. Companies should ideally choose target firms who are able to offer related yet new knowledge and expertise. This enables the acquiring firm to develop enhanced core and new core areas where capabilities are respectively limited or non-existent. Such arrangements have minimal value in existing core areas where the acquiring firm is already strong.

The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Routine dynamics provide a robust theoretical framework to explore a wide range of organizational phenomena. However, the study of routines and the effect of technology on its performativity in small and medium-sized enterprises (SMEs) still lack attention by researchers. This paper aims to analyze how the balance between process technology and human cognition affects routines' performativity in SMEs.

It was conducted a multicase study composed of Brazilian SMEs in the bakery industry. Data collection took place through interviews with managers and employees, observation of operational processes and document analysis. Thematic content analysis was adopted for categorization and data analysis.

The authors’ findings allow inferring there is no primacy of a more automated or artisanal production process to achieve competitiveness, which breaks the paradigm of the superior performance of automated production over the artisanal process that haunts SMEs. Though technology increases production efficiency, the artisanal approach can be valuable at promoting a company by commercially using this know-how to explore other business models appreciated by the public.

The authors’ proposals became relevant in a practical perspective once it works as a parameter for SME managers' decision-making about new investments in production resources and to foster public policies and other actions developed by support services for small businesses.

This study expands the frontiers in routines literature on SMEs, which lacks deepening. From this, SME managers can intensify actions to optimize process routines performativity through technologies or human cognition to keep the routines on track.

The link between mergers and acquisitions (M&A) and innovation has been analysed in both corporate finance studies and the innovation literature. Despite this attention and the practical evidence that highlights different connections between these two terms, there is a need to investigate the latest trends with regard to these important topics, and to put a particular focus on the emerging paradigm of open innovation. Thus, this paper aims to provide a systematic literature review (SLR) about the relationship between M&As and the concept of innovation in the current scenario.

Through an SLR from 2012 to June 2017, 55 papers have been identified and analysed to give a better understanding of the motivations and the methodologies adopted in past studies.

This paper identifies various conceptual and research methodological characteristics of studies that have connected, directly or indirectly, M&As and innovation in recent years. In addition, the results highlight a scarcity of studies that explicitly or implicitly refer to the open innovation paradigm, marking only a partial understanding of this emerging phenomenon.

This paper improves the knowledge on the link between extraordinary corporate transactions and innovation, and it highlights that a clear consensus, particularly regarding the open innovation paradigm, is lacking. Thus the authors propose that future studies should carefully evaluate M&As by following the open innovation approach.

This study aims to investigate three organizational-level factors (geographical proximity, technological similarity and organizational identity integration) that influence the likelihood of post-mergers and acquisition (M&A) joint knowledge creation between inventors from the target and acquiring firms.

Analyzing post-M&A joint patent filing activities from 136 M&A deals in high-tech industries, the authors conduct a zero-inflated negative binomial regression analysis to estimate the likelihood of joint knowledge creation.

The results indicate that close geographical proximity and technological similarity are positively associated, whereas the integration of organizational identity is negatively associated with post-M&A joint knowledge creation.

Managers searching for an ideal acquisition target firm for joint production of new technologies or products should consider factors such as location, prior knowledge base and post-acquisition integration strategies.

The proposed model is a comprehensive framework that considers physical, cognitive and identity dimensions as antecedents of post-M&A joint knowledge creation. This study analyzes joint patenting activities to measure post-M&A joint knowledge creation between target and acquiring firm inventors.

This study aims to develop a new integrated decision-making framework specifically designed to address complexity and uncertainty for project portfolio management. It particularly focuses on managing portfolios in a post-merger context. The paper portrays a normative and prescriptive approach to effectively creating a well-balanced project portfolio in a post-merger scenario.

This study introduces hyper-project portfolio frame as a prospective methodology for evaluating post-merger portfolios. The proposed method especially addresses the challenges associated with integration following a merger.

Hyper-project portfolio frame provides fundamental leaps in post-merger project portfolios. The frame gives opportunities to check consistency with policy, organizational scalability, flexibility and product diversity. It also underpins achieving the strategic objectives of mergers and acquisitions (M&As).

The literature synthesis is approached from an interpretative standpoint. The research incorporates discussions and comparative studies from the relevant literature and introduces a novel approach. Additionally, new descriptive studies can expand the proposed process-oriented decision-making. Moreover, this research does not consider hostile takeovers.

Nested in content and process-oriented fashion, the frame provides suitable prequalification analysis for portfolios in a post-merger under the concepts of complexity, uncertainty, risk and value.

Post-merger integration (PMI) is driven by coevolving processes. By integrating the literature on acquisitions with that of knowledge networks, this paper highlights different reconstruction mechanisms for dual knowledge networks during PMI – namely, internal knowledge network coupling and external knowledge network embeddedness. This paper aims to examine their coevolutionary relationships with PMI.

A coevolutionary framework is tested using a latent growth model and cross-lagged models. The analysis is based on longitudinal data collected from 116 Chinese technology-sourcing overseas merger and acquisition firms.

This paper unearths a novel idea that variations in post-merger reconstruction of dual knowledge networks can explain why some acquirers increase the degree of integration faster than the others. The results show that the internal knowledge network coupling leads to more knowledge similarity and, in turn, causes a higher degree of integration. The external knowledge network embeddedness also causes higher relative network status of the acquirer, which consequently leads to a higher degree of integration. Furthermore, results from cross-lagged models confirm that an increase in the degree of integration positively influences subsequent changes in the internal knowledge network coupling and external knowledge network embeddedness, thus forming a coevolutionary relationship over time.

This paper responds to recent calls for more insights into the dynamics of PMI. By highlighting different reconstruction mechanisms for internal and external knowledge networks during PMI, this paper explains why it is important to understand PMI dynamics from a dual knowledge network perspective. This paper is the first to adopt a coevolutionary perspective and provide a more comprehensive dynamic framework between PMI and reconstruction of dual knowledge networks. Besides, this paper contributes to the research on emerging market multinational corporations’ cross-border merger and acquisition integration from a dynamic perspective, revealing the time effects of traditionally favored light-touch integration.

Technical knowledge is a key factor in firm innovation. This study aims to construct a theoretical framework of technological boundary-spanning search, exploratory innovation and exploitative innovation to help firms adjust their search strategies and improve the effect of external resources on internal innovation.

The study uses questionnaires to collect data and conducts empirical analysis using SPSS25 and AMOS24.

Technological boundary-spanning search is positively correlated with ambidextrous innovation. Additionally, knowledge base positively moderates the effect of technological boundary-spanning search on ambidextrous innovation and knowledge distance negatively moderates the effect of technological boundary-spanning search on ambidextrous innovation. When a firm’s knowledge base is robust, its ambidextrous innovation can benefit more from technological boundary-spanning search. Additionally, when the knowledge distance is less, a firm’s ambidextrous innovation can benefit more from technological boundary-spanning search.

Considering organizational ambidexterity, this study divides firm innovation into exploratory innovation and exploitative innovation and presents a theoretical framework for the effect of technological boundary-spanning search on ambidextrous innovation. Additionally, it provides a comprehensive understanding of the crucial roles of knowledge base and knowledge distance in the relationship between technological boundary-spanning search and exploratory and exploitative innovation.

The purpose of this study is to develop a structural equation model to explain the complex relationship between social network and firm performance by introducing the mediating role of trust, selling capability and pricing capability.

The research model with hypothesis development was derived based on the literature. To provide empirical evidence, this study carried out a survey in which the data were equated with a list of questionnaires with a random survey of 380 small and medium enterprises (SMEs) in the Indonesian context.

This study indicates that the use of social media in management process will not affect the increasing firm performance, unless the firms build trust upon social networks. The social network with trust allows the firms to gain a pricing capability and a selling capability, which brings a positive impact on firm performance. The results also show that the selling and the pricing capabilities become essential following the utilizing the social media, which concerns on trust building.

This study focused on the small-to-medium context, which has conventionally provided an exemplary site for the development of social capital theory but raises issues of generalizability across different contexts.

To the managers, it is advisable to encourage their employees to consciously exploit the selling capability by enhancing the business networks via social media to achieve the firm performance.

This paper contributes to the social capital theory by explaining the mediating role of trust in the complex relationship between social network and firm performance. This study provides evidence that trust plays a pivotal role in social networks, which enable the observed firms to achieve the performance.

This paper aims to explore the relationships between organizational unlearning and knowledge transfer in cross-border mergers and acquisitions (M&As) from a routine-based view. The study also stresses the mediating role that knowledge integration capability plays in this relationship.

In all, 178 samples were collected from Chinese multinational corporations that experienced cross-border M&As. In addition, the bootstrap method was used to test the mediating role of knowledge integration capability.

The empirical results indicate that knowledge integration capability is the crucial link between organizational unlearning and knowledge transfer. Specifically, this capability goes beyond the direct effect of organizational unlearning on knowledge transfer and points to the importance of enhancing knowledge integration capability. In turn, knowledge integration capability has a significant influence on knowledge transfer. The study finds that knowledge integration capability mediates the relationship between organizational unlearning and knowledge transfer.

This study adopts a routine-based view to develop a theoretical model for examining the relationship between organizational unlearning, knowledge integration capability and knowledge transfer in the context of cross-border M&As. This model provides new insights for a routine-based understanding of the important mediating role of knowledge integration capability for knowledge transfer and the effects of this role on the specific knowledge transfer, i.e. technological, marketing and managerial knowledge.