ACQUIRING ONCE, ACQUIRING TWICE — LESSONS LEARNED FROM REPEATED ACQUISITIONS OF INNOVATIVE FIRMS

This paper describes and discusses learning in repeated acquisitions of innovative firms. Researchers have pointed to how companies may improve performance through conducting repeated acquisitions, while they have not previously focused on repeated acquisitions of innovative firms. Findings of this present study are summarised in five learnings: forming a professional organisation that deals with acquisitions; acquiring present, ready-for-market innovations rather than innovative capabilities; acquiring complementary rather than diverse innovations; keeping the innovator and disbanding from him/her; and the slow process of integration. The findings indicate risk reductions and decreased diversification foci in later acquisitions. They also pinpoint learning on how to handle acquisitions, not just knowledge related to the acquired party. The paper contributes to research on acquisitions of innovative firms through discussing performance improvements and what expectations to place on acquisitions. It also contributes to the learning literature through providing a case illustration on a company that changed its acquisition strategy based on knowledge accumulated through previous acquisitions.