Journal of Management Studies 39:2 March 2002
0022-2380
EXTERNAL SOURCES OF INNOVATIVE CAPABILITIES: THE
PREFERENCE FOR STRATEGIC ALLIANCES OR MERGERS AND
ACQUISITIONS*
J H
G D
University of Maastricht
This paper explores the preferences that companies have as they use alternative
(quasi) external sources of innovative competencies such as strategic technology
alliances, mergers and acquisitions, or a mix of these. These alternatives are
studied in the context of distinct industrial, technological and international set-
tings during the first half of the 1990s. Different strategies followed by companies
and the role played by routinized sets of preferences are also taken into consider-
ation. The analysis demonstrates that these options are influenced by both differ-
ent environmental conditions and firm specific circumstances, such as those related
to protecting core businesses.
During the 1990s strategic alliances and mergers and acquisitions (M&As) became
well-known organizational instruments through which companies could increase
their market power, enter into new markets or enhance their capabilities. The
present contribution focuses on the basic research question: under which condi-
tions do companies prefer strategic technology alliances, M&As, or a combination
of these, as alternative external sources of innovative capabilities? The relevance
of our research for management studies is found in each of the major subjects
mentioned in this basic research question. Strategic alliances have grown in
numbers, expressing the importance that this form of organization has for the
strategies of many companies. M&As have already been known to companies
for a much longer period of time. As far as innovation is concerned, the effect of
increased competition through new products and processes has been put on the
agenda of both practitioners and academics.
Contributions that pay attention to the preferences of companies with regard
to strategic alliances and M&As usually analyse the conditions that affect the pref-
Address for reprints: John Hagedoorn, MERIT, Faculty of Economics and Business
Administration, University of Maastricht, PO Box 616, 6200 MD Maastricht, the Netherlands
( ).
© Blackwell Publishers Ltd 2002. Published by Blackwell Publishers, 108 Cowley Road, Oxford OX4 1JF, UK
and 350 Main Street, Malden, MA 02148, USA.
0022-2380
EXTERNAL SOURCES OF INNOVATIVE CAPABILITIES: THE
PREFERENCE FOR STRATEGIC ALLIANCES OR MERGERS AND
ACQUISITIONS*
J H
G D
University of Maastricht
This paper explores the preferences that companies have as they use alternative
(quasi) external sources of innovative competencies such as strategic technology
alliances, mergers and acquisitions, or a mix of these. These alternatives are
studied in the context of distinct industrial, technological and international set-
tings during the first half of the 1990s. Different strategies followed by companies
and the role played by routinized sets of preferences are also taken into consider-
ation. The analysis demonstrates that these options are influenced by both differ-
ent environmental conditions and firm specific circumstances, such as those related
to protecting core businesses.
During the 1990s strategic alliances and mergers and acquisitions (M&As) became
well-known organizational instruments through which companies could increase
their market power, enter into new markets or enhance their capabilities. The
present contribution focuses on the basic research question: under which condi-
tions do companies prefer strategic technology alliances, M&As, or a combination
of these, as alternative external sources of innovative capabilities? The relevance
of our research for management studies is found in each of the major subjects
mentioned in this basic research question. Strategic alliances have grown in
numbers, expressing the importance that this form of organization has for the
strategies of many companies. M&As have already been known to companies
for a much longer period of time. As far as innovation is concerned, the effect of
increased competition through new products and processes has been put on the
agenda of both practitioners and academics.
Contributions that pay attention to the preferences of companies with regard
to strategic alliances and M&As usually analyse the conditions that affect the pref-
Address for reprints: John Hagedoorn, MERIT, Faculty of Economics and Business
Administration, University of Maastricht, PO Box 616, 6200 MD Maastricht, the Netherlands
( ).
© Blackwell Publishers Ltd 2002. Published by Blackwell Publishers, 108 Cowley Road, Oxford OX4 1JF, UK
and 350 Main Street, Malden, MA 02148, USA.
