M&As and Technological Innovation: A Review and Future Research Agenda

Mergers and acquisitions (M&As) are strategic vehicles that enable firms to improve their market position and performance. Innovation-driven acquisitions, often referred to as technological acquisitions, have garnered significant attention in the management and innovation literature due to their potential to enhance firms’ innovation capabilities and performance. Despite the growing body of research on technological acquisitions, empirical findings and theoretical arguments remain fragmented. This fragmentation underscores the need for a comprehensive discussion of the various factors shaping innovation performance post-acquisition. Using a framework inspired by Coleman’s bathtub model, I synthesize key discussions and empirical findings from both organizational- and individual-level studies. This review highlights the mechanisms that shape knowledge synthesis, innovation activities, and employee engagement during post-acquisition integration. By integrating insights from both perspectives, I identify key gaps in the literature and propose directions for future research on how technological acquisitions drive innovation and shape post-acquisition processes.