Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/248055 
Authors: 
Year of Publication: 
2020
Citation: 
[Journal:] Verslas: Teorija ir praktika / Business: Theory and Practice [ISSN:] 1822-4202 [Volume:] 21 [Issue:] 2 [Publisher:] Vilnius Gediminas Technical University [Place:] Vilnius [Year:] 2020 [Pages:] 555-565
Publisher: 
Vilnius Gediminas Technical University, Vilnius
Abstract: 
Pharmaceutical firms spend billions of dollars to develop the next breakthrough drug and to maintain their market shares. We investigate how pharmaceutical firms use mergers and acquisitions to boost their innovation performance which has been found to result in better performance outcomes. Adding to the recent research on mergers and acquisitions, we found that firms that are explicit with their R&D goal orientation from the beginning of the acquisition journey are more successful in their innovation endeavours than firms with other goal orientation. Further, the firms' prior acquisition experience appears to aid their innovation performance. However, we found that target size can affect the post-acquisition innovation performance but has diminishing returns as target size increases. Ultimately, our findings suggest that having an explicit R&D goal orientation is really important for a healthy innovation pipeline for pharmaceutical firms.
Subjects: 
mergers and acquisitions
innovation
R&D
goal orientation
acquisition experience
organizational learning
pharmaceutical industry
JEL: 
L25
L65
O32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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