Innovation, resources and corporate transactions: the dynamics of technology and corporate scope / Aseem Kaul.

Format:

Book

Manuscript

Thesis/Dissertation

Author/Creator:

Kaul, Aseem.

Contributor:

Singh, Harbir, advisor.

University of Pennsylvania.

Language:

English

Subjects (All):

Penn dissertations--Management.

Management--Penn dissertations.

Local Subjects:

Penn dissertations--Management.

Management--Penn dissertations.

Physical Description:

vii, 156 pages ; 29 cm

Production:

2009.

Summary:

This dissertation studies the dynamic relationship between corporate scope and firm resources. Specifically, it examines the role of technological innovation by the firm and its rivals in driving changes in corporate scope, as well as the subsequent effect on firm innovation of these corporate scope changes. Chapter 2 presents a theoretical model of the co-adaptation of firm resources and corporate scope, where the completion of successful innovation by the firm as well as innovation by firm's rivals changes the opportunities available to the firm, prompting it to reallocate its scarce resources and thus alter both its corporate scope and its balance of exploration and exploitation. A number of propositions related to the effect of innovation on corporate scope and the moderating role of firm resources are developed. Chapter 3 proceeds to test some of these propositions by examining technological innovation as an antecedent of scope change in a sample of US manufacturing firms from 1982-2002, finding a positive relationship between innovation and the firm's propensity to undertake both scope-increasing acquisitions and scope-decreasing divestments. Chapter 4 then completes the loop by studying post-divestment innovation. Focus-increasing divestments are found to be positively related to post-divestment innovation productivity and negatively related to post-divestment technological diversity, though these effects are moderated by complementary resources, market opportunity and appropriability regimes. Overall, the dissertation provides a rich theoretical description of the co-evolution of corporate scope and firm resources, one that accounts for both the endogeneity of firm investment decisions and the effect of various moderators. It thus contributes to the literature on firm evolution by bringing together insights from competitive and corporate strategy. In addition, it provides large-sample quantitative evidence for the co-adaptation of technology and scope that has consequences for both the literature on divestments and the literature on technology and innovation.

Notes:

Adviser: Harbir Singh.

Thesis (Ph.D. in Management) -- University of Pennsylvania, 2009.

Includes bibliographical references.