Skip to main content

Effects of Technological Change on Acquisition Behavior: An Empirical Analysis of Electronic Design Automation

  • Conference paper
  • 2512 Accesses

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 210))

Abstract

This paper contains an empirical analysis of acquisition dynamics in the electronic design automation (EDA) industry. Using qualitative and quantitative data, we show that particular groups of EDA firms strongly contribute to acquisition activity in the industry at specific times. Based on this we provide empirical evidence that specialized firms pursue focused and ‘defensive’ acquisitions during times of uncertainty, indicating that concentration on existing competencies is preferred over diversification into promising new, but unfamiliar markets.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Wagner, M.: Acquisition as a means for external technology sourcing: complementary, substitutive or both? Journal of Engineering and Technology Management 28, 283–299 (2011)

    Article  Google Scholar 

  2. Agrawal, A., Jaffe, J.F.: The post-merger performance puzzle. In: Cooper, C., Gregory, A. (eds.) Advances in Mergers and Acquisitions, pp. 119–156. JAI Press, Stamford (2000)

    Google Scholar 

  3. Ahuja, G., Katila, R.: Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study. Strategic Management Journal 22(3), 197–220 (2001)

    Article  Google Scholar 

  4. Wagner, M.: To explore or to exploit? An empirical investigation of acquisitions by large incumbents. Research Policy 40, 1217–1225 (2011)

    Article  Google Scholar 

  5. Cloodt, M., Hagedoorn, J., van Kranenburg, H.: Mergers and acquisitions: Their effect on the innovative performance of companies in high-tech industries. Research Policy 35(5), 642–654 (2006)

    Article  Google Scholar 

  6. Wagner, M.: Acquisitions as a means of innovation sourcing by incumbents and growth of technology-oriented ventures. Int. J. of Tech. Management 52, 118–134 (2010)

    Article  Google Scholar 

  7. King, D.R., Dalton, D.R., Daily, C.M., Covin, J.G.: Meta-analyses of post-acquisition performance: Indications of unidentified moderators. Strategic Management Journal 25(2), 187–200 (2004)

    Article  Google Scholar 

  8. Schoenberg, R., Reeves, R.: What determines acquisition activity within an industry? European Management Journal 17(1), 93–98 (1999)

    Article  Google Scholar 

  9. Porter, M.: Competitive Strategy: Techniques for analyzing industries and competitors. Free Press, New York (1980)

    Google Scholar 

  10. Ahern, K.R., Harford, J.: The importance of industry links in merger waves. Journal of Finance 69(2), 527–576 (2014)

    Article  Google Scholar 

  11. DiMaggio, P.J., Powell, W.W.: The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review 48(2), 147–160 (1983)

    Article  Google Scholar 

  12. TechAmerica. TechAmerica’s NAICS-based definition of high tech. (2013), http://www.techamerica.org/naics-definition

  13. Andrade, G., Mitchell, M., Stafford, E.: New evidence and perspectives on mergers. Journal of Economic Perspectives 15(2), 103–120 (2001)

    Article  Google Scholar 

  14. Gort, M.: An Economic Disturbance Theory of Mergers. The Quarterly Journal of Economics 83(4), 624–642 (1969)

    Article  Google Scholar 

  15. Harford, J.: What drives merger waves? Journal of Financial Economics 77(3), 529–560 (2005)

    Article  Google Scholar 

  16. Prahalad, C., Hamel, G.: The Core Competence of the Corporation. Harvard Business Review 68(3), 79–91 (1990)

    Google Scholar 

  17. Teece, D.J., Pisano, G., Shuen, A.: Dynamic capabilities and strategic management. Strategic Management Journal 18(7), 509–533 (1997)

    Article  Google Scholar 

  18. March, J.G.: Exploration and exploitation in organizational learning. Organization Science 2(1), 71–87 (1991)

    Article  MathSciNet  Google Scholar 

  19. Hamel, G., Prahalad, C.K.: Corporate imagination and expeditionary marketing. Harvard Business Review 69(4), 81–92 (1991)

    Google Scholar 

  20. Garud, R., Kanøe, P. (eds.): Path Dependence and Creation. Psychology Press, Mahwah (2001)

    Google Scholar 

  21. Tushman, M.L., Anderson, P.: Technological Discontinuities and Organizational Environments. Administrative Science Quarterly 31(3), 439–465 (1986)

    Article  Google Scholar 

  22. Dushnitsky, G., Lenox, M.J.: When do firms undertake R&D by investing in new ventures? Strategic Management Journal 26(10), 947–965 (2005)

    Article  Google Scholar 

  23. Mitchell, M.L., Mulherin, H.J.: The impact of industry shocks on takeover and restructuring activity. Journal of Financial Economics 41, 193–229 (1996)

    Article  Google Scholar 

  24. Stern, I., Henderson, A.D.: Within-business diversification in technology-intensive industries. Strategic Management Journal 25(5), 487–505 (2004)

    Article  Google Scholar 

  25. Zahavi, T., Lavie, D.: Intra-industry diversification and firm performance. Strategic Management Journal 34(8), 978–998 (2013)

    Article  Google Scholar 

  26. Henkel, J., Rønde, T., Wagner, M.: And the Winner is – Acquired. Entrepreneurship as a Contest yielding Radical Innovations. Research Policy 44, 295–310 (2015)

    Article  Google Scholar 

  27. El Sawy, O.A., Malhotra, A., YoungKi, P., Pavlou, P.A.: Seeking the Configurations of Digital Ecodynamics: It Takes Three to Tango. Information Systems Research 21(4), 835–848 (2010)

    Article  Google Scholar 

  28. Furlan, A., Cabigiosu, A., Camuffo, A.: When the Mirror Gets Misted up: Modularity and Technological Change. Strategic Management Journal 35(6), 789–807 (2014)

    Article  Google Scholar 

  29. Birnbaum, M.D.: Essential Electronic Design Automation. Prentice Hall International, Upper Saddle River (2004)

    Google Scholar 

  30. Intel: Microprocessor quick reference guide. Intel Corp. (2013), http://www.intel.com/pressroom/kits/quickreffam.htm

  31. EE Times: ESL tools: Are EDA giants in the game? EETimes.com (2004), http://www.eetimes.com/document.asp?doc_id=1151215

  32. International Business Strategies: Analysis of the relationship between EDA expenditures and competitive positioning of IC vendors for 2003. A custom study for EDA consortium and edacentrum e.V (2003), http://www.edac.org/downloads/04_05_28_IBS_Report.pdf

  33. Sperling, E.: Experts at the table: Changing design. System-Level Design Community (2012), http://chipdesignmag.com/sld/blog/2012/02/10/experts-at-the-table-changing-design-3/

  34. Grant, R.M., Jammine, A.P., Thomas, H.: Diversity, diversification, and profitability among British manufacturing companies, 1972-84. Academy of Management Journal 31(4), 771–801 (1988)

    Article  Google Scholar 

  35. Lebret, H.: Start-up: What we may still learn from Silicon Valley. CreateSpace, Lausanne (2007)

    Google Scholar 

  36. Desyllas, P., Hughes, A.: Sourcing technological knowledge through corporate acquisition: Evidence from an international sample of high technology firms. Journal of Technology Management Research 18(2), 157–172 (2008)

    Google Scholar 

  37. Soh, P.: Network patterns and competitive advantage before the emergence of a dominant design. Strategic Management Journal 31(4), 438–461 (2010)

    Article  Google Scholar 

  38. Kleinbaum, D.G., Kupper, L.L., Muller, K.E., Nizam, A.: Applied Regression Analysis and Multivariable Methods. Duxbury Press, Washington (1998)

    Google Scholar 

  39. Cameron, C.A., Trivedi, P.K.: Regression analysis of count data. Cambridge University Press, Cambridge (1998)

    Book  MATH  Google Scholar 

  40. Hitt, M.A., Hoskisson, R.E., Ireland, R.D.: Mergers and acquisitions and managerial commitment to innovation in M-form firms. Strategic Management Journal 11(summer special issue), 29–47 (1990)

    Google Scholar 

  41. Blonigen, B.A., Taylor, C.T.: R&D intensity and acquisitions in high-technology industries: Evidence from the US electronic and electrical equipment industries. Journal of Industrial Economics XLVIII(1), 47–70 (2000)

    Google Scholar 

  42. Cohen, W.M., Levinthal, D.A.: Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly 35(1), 128–152 (1990)

    Article  Google Scholar 

  43. Kleer, R., Wagner, M.: Acquisition through Innovation Tournaments in High-Tech Industries: A Comparative Perspective. Economics of Innovation and New Technology 22(1), 73–77 (2013)

    Article  Google Scholar 

  44. Grimpe, C., Hussinger, K.: Pre-empting technology competition through firm acquisitions. Economics Letters 100(2), 189–191 (2008)

    Article  Google Scholar 

  45. Hussinger, K.: R&D and subsidies at the firm level: An application of parametric and semiparametric two-step selection models. Journal of Applied Econometrics 23(6), 729–747 (2008)

    Article  MathSciNet  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Thomas Lücking .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer International Publishing Switzerland

About this paper

Cite this paper

Lücking, T., Wagner, M. (2015). Effects of Technological Change on Acquisition Behavior: An Empirical Analysis of Electronic Design Automation. In: Fernandes, J., Machado, R., Wnuk, K. (eds) Software Business. ICSOB 2015. Lecture Notes in Business Information Processing, vol 210. Springer, Cham. https://doi.org/10.1007/978-3-319-19593-3_9

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-19593-3_9

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-19592-6

  • Online ISBN: 978-3-319-19593-3

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics