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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Detail(s)

Original languageEnglish
Publication statusPresented - 18 Sept 2016

Conference

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

Abstract

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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