Dynamics of external growth in SMEs: A process model of acquisition capabilities emergence

Acquisition growth is not a common theme in entrepreneurship research. Entrepreneurial growth has traditionally been addressed as organic growth, i.e. as internal expansion through the extension of existing operations and internally induced process and product innovations. We contend that acquisition growth may generate entrepreneurial benefits over the long run, which may not be present in organic growth or green-field establishments. In fact, acquisition can be a way to release entrepreneurial activities in a firm. Acquisitions may revitalize a firm and improve its ability to anticipate or to react adequately to changing external conditions. We contend that these positive outcomes will only accrue to acquiring organizations when acquisition growth is coupled with the development of acquisition capabilities, i.e., with the accumulation, storage, and exploitation of fresh organizational knowledge.