Measuring the influence of M&A knowledge flow on open innovation

Abstract

The concept of open innovations has been around for some time with recent literature seeking to understand how this phenomenon takes place in practice and its benefits. Dahlander and Gann (2010) have built on the concept of purposive knowledge flows and the types of open innovation that occur as a result. This study saw a business and academic need to explore what the influences are from inter-organisational knowledge flows due to a merger or acquisition (M&A) on open innovation. This research used a multiple case study approach with firms that have undertaken M&A transactions, in order to extract themes or influences on open innovation. These influences are determined as either negatively or positively impactful on open innovation. Four key subsets of open innovation – acquiring; sourcing; revealing; and selling - enabled a deeper understanding of M&A external and internal knowledge flow influences and how they impact on the firm’s open innovation activities.