Mastering the Acquirer's Innovation Dilemma: Knowledge Sourcing through Corporate Acquisitions

306 Pages·2005·2.21 MB·English

by  Valerie Bannert-Thurner

Mastering the Acquirer’s
Innovation Dilemma
Knowledge Sourcing through
Corporate Acquisitions
Valerie Bannert-Thurner
Mastering the Acquirer’s Innovation Dilemma
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Mastering the Acquirer’s
Innovation Dilemma
Knowledge Sourcing through
Corporate Acquisitions
Valerie Bannert-Thurner
in association with the European Institute for
Technology and Innovation Management
© Valerie Bannert-Thurner 2005
All rights reserved.No reproduction,copy or transmission of this
publication may be made without written permission.
No paragraph of this publication may be reproduced,copied or transmitted
save with written permission or in accordance with the provisions of the
Copyright,Designs and Patents Act 1988,or under the terms of any licence
permitting limited copying issued by the Copyright Licensing Agency,90
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Any person who does any unauthorized act in relation to this publication
may be liable to criminal prosecution and civil claims for damages.
The author has asserted her right to be identified
as the author of this work in accordance with the Copyright,
Designs and Patents Act 1988.
First published in 2005 by
PALGRAVE MACMILLAN
Houndmills,Basingstoke,Hampshire RG21 6XS and
175 Fifth Avenue,New York,N.Y.10010
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PALGRAVE MACMILLAN is the global academic imprint of the Palgrave
Macmillan division of St.Martin’s Press,LLC and of Palgrave Macmillan Ltd.
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ISBN-13: 978–1–4039–4755–0
ISBN-10: 1–4039–4755–4
This book is printed on paper suitable for recycling and made from fully
managed and sustained forest sources.
A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Bannert-Thurner,Valerie,1978–
Mastering the acquirer’s innovation dilemma :knowledge sourcing through
corporate acquisitions / by Valerie Bannert-Thurner.
p.cm.
Includes bibliographical references and index.
ISBN 1–4039–4755–4 (cloth)
1.Consolidation and merger of corporations.2.Technological innovations.
3.Strategic planning.I.Title.
HD2746.5.B34 2005
658.1(cid:1)62—dc22 2005047468
10 9 8 7 6 5 4 3 2 1
14 13 12 11 10 09 08 07 06 05
Printed and bound in Great Britain by
Antony Rowe Ltd,Chippenham and Eastbourne
To Philipp
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Contents
List of Figures xi
List of Best Practices xv
List of Abbreviations xvi
Preface xix
1 Introduction 1
1.1 Relevance of the Topic – Acquisitions in
Innovation-driven Industries 1
1.2 Acquisition Performance from a Technology-based
Perspective 5
1.3 Call from Practice – Mastering the Innovation Dilemma 7
1.4 Objectives, Research Approach and Content of the Book 9
2 Technology,Innovation and their Management 13
2.1 Terms and Definitions: Technology-based Value
Creation 13
2.2 Technology Management 17
2.2.1 Integrated technology management 17
2.2.2 Basic elements of the integrated technology
management 18
2.2.3 Main tasks of the integrated technology
management 23
2.3 Innovation Management 26
2.4 Conclusion 27
3 Introduction to Corporate Acquisitions 28
3.1 Terms and Definitions: Corporate Acquisitions 28
3.2 Acquisition Types 29
3.3 Acquisitions as a Means of Value Creation 30
3.4 Acquisitions as a Business Strategic Path 30
3.5 Conclusion 31
vii
viii Contents
4 Case Studies from Reality:Technology-based
Value Creation in Real-life Acquisitions 32
4.1 Theoretical Model to Investigate Technology-based
Value Creation 33
4.2 Selection of the Case Studies and Data Collection 34
4.3 Cases from Reality 37
4.3.1 Case 1: Hilti–Ammann Lasertechnik acquisition 37
4.3.2 Case 2: Fillpack–Aseptofill acquisition 46
4.3.3 Case 3: Phonak–Unitron acquisition 57
4.3.4 Case 4: Unaxis–Plasma-Therm acquisition 69
4.3.5 Case 5: Starrag–Heckert acquisition 86
4.4 Conclusion on Cases from Reality 99
5 Model of Reality:A New Understanding of
Technology-based Value Creation in
Corporate Acquisitions 100
5.1 Technology-based Value Creation – Quick gains
and Long-term Success 101
5.1.1 Innovation and resource deployment 101
5.1.2 Quick gains and long-term successes 102
5.2 Acquisition Type – Indeed not all M&As are
Alike – and that matters 104
5.2.1 Acquisition characteristics 105
5.2.2 Acquisition types and strategies 110
5.3 Initial Conditions – Necessary, However
Insufficient, Conditions 113
5.3.1 Technology-based value creation potential 113
5.3.2 Acquisition capability 119
5.3.3 Strategic fit 121
5.3.4 Contextual fit 123
5.4 Strategy Processes – The Appropriate Acquisition and
Integration Processes 125
5.4.1 The impact of the acquisition process on
technology-based value creation 126
5.4.2 The impact of the integration process on
technology-based value creation 129
5.5 External Developments 135
5.6 Conclusion from the New Understanding 136
Contents ix
6 Technology-based Strategic Acquisition and
IntegrationManagement 137
6.1 Developing the Concept 138
6.2 Overview of the Concept 139
6.2.1 Phases of the technology-based acquisition and
integration management 139
6.2.2 Layers of the technology-based acquisition
and integration management 141
6.2.3 Technology-based strategic acquisition
and integration management on the
normative, strategic and operational level 145
6.2.4 Integrating the technology and innovation
management into the AIM 145
6.3 The Detailed Concept 145
6.3.1 Strategic planning 148
6.3.2 Company screening 154
6.3.3 Acquisition and integration strategy development 166
6.3.4 Due diligence 202
6.3.5 Integration planning 220
6.3.6 Strategy implementation 228
6.4 Conclusion from Technology-based Strategic
Acquisition and Integration Management 234
7 Management Principles 237
7.1 Management Principles for a New Understanding 237
7.1.1 Management Principle 1: Wheel of
technology-based value creation 237
7.1.2 Management Principle 2: Innovativeness
cannot be bought 238
7.1.3 Management Principle 3: Willingness to change
as key initial condition 238
7.1.4 Management Principle 4: Creative destruction of
innovation context 239
7.2 Management Principles for a New Concept 239
7.2.1 Management Principle 5: Technology concerns
as basic fundamental 239
7.2.2 Management Principle 6: Holistic, systemic and
integrative concept 240
7.2.3 Management Principle 7: Prospective perspective 240
7.3 Management Principles for Implementation 241
7.3.1 Management Principle 8: Implementation requires
a new awareness of acquisitions 241