Acquisitions have become essential tools to retain the technological edge in digital industries. This paper analyses the technological integration challenges in such acquisitions. Acquirers in digital industries are typically platform leaders in platform markets. They acquire (a) other platform providers to extend the platform core and to derive network effects by consolidating platform user groups, and (b) complement providers to create monopoly positions for the complements and for innovation complementarity. To enable these acquisition benefits, acquirers face technological integration challenges in process and product integration. Through a case study of Network Solutions Corp. (NSC), a Fortune 500 company that has acquired more than 175 business units, we develop four propositions explaining how the benefits of platform core and complement acquisitions are differently contingent on technical process and product integration.
|Number of pages
|Published - 2015
|The Academy of Management Annual Meeting 2015: Opening Governance - Vancouver, Canada
Duration: 7 Aug 2015 → 11 Aug 2015
Conference number: 75
|The Academy of Management Annual Meeting 2015
|07/08/2015 → 11/08/2015