Making acquisitions, although a popular strategy, may not always lead to positive firm performance. Researchers have offered several explanations for this relationship. One is that acquisitions lead to lower investments in R&D and curtail the championing process whereby organization members internally promote new products and processes in firms. The current research found that acquisitions had negative effects on "R&D intensity" and "patent intensity."
Copyright © 1991 Academy of Management. This article first appeared in The Academy of Management Journal 34:3 (1991), 693-706.
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Hitt, Michael A., Robert E. Hoskisson, R. Duane Ireland and Jeffrey S. Harrison. "Effects of Acquisitions on R&D Inputs and Outputs." The Academy of Management Journal 34, no. 3 (September 1991): 693-706. https://doi.org/10.5465/256412