Ambidexterity or trade-off? : External technology acquisition and its impact on firm innovative and financial performance

Research output: Conference PapersRGC 33 - Other conference paperpeer-review

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Original languageEnglish
Publication statusPresented - 18 Sept 2016


TitleSMS 36th Annual Conference
LocationBerlin, Germany
Period17 - 20 September 2016


Acquiring external technologies can help firms efficiently respond to environmental dynamism. Based on the ambidexterity literature, firms should balance exploratory and exploitative activities in order to ensure long-term success. We hypothesize that balancing the number of acquired incremental and radical technologies will have a positive impact on a firm’s long-term innovative and financial performance. Additionally, a domain separation mode to balance acquired technologies is less costly, and thus is more beneficial for firm performance than is a temporal separation mode. This research will shed light on the ambidexterity phenomenon in the context of external technology acquisition.

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