Mergers and acquisitions represent one fundamental mode of organizational change. Organizations often rely on acquisitions to acquire technological knowledge to improve technical capabilities and innovativeness. Because acquirers often maintain collaborative relationships with targets prior to acquisition, such relationships may improve an acquirer's ability to evaluate, preserve and transfer the target's resources and capabilities, leading to improved innovativeness. This research tests when and how acquirer alliance experience with a target affects post-acquisition innovative performance. We conduct two complementary studies. The first is a multiple case study design, using primarily qualitative data collected via semi-structured interviews with multiple informants from five high technology firms that recently acquired an alliance partner. The second study will test theory using longitudinal analysis of the alliance, acquisition and innovative activity of a panel of leading communications equipment manufacturers during the period 1987-1997. Broader Impact: This research should add to our understanding of the conditions under which acquisitions influence acquirer innovation and will help organizational managers to understand when and how to use alliances to inform their acquisition decisions and improve post-acquisition performance. We will develop a detailed set of practical guidelines to help managers adopt the best practices that we identify.
