The influences of being acquired on subsidiary innovation adoption
Article first published online: 22 MAR 2012
Copyright © 2012 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 33, Issue 11, pages 1269–1285, November 2012
How to Cite
Barden, J. Q. (2012), The influences of being acquired on subsidiary innovation adoption. Strat. Mgmt. J., 33: 1269–1285. doi: 10.1002/smj.1976
- Issue published online: 11 SEP 2012
- Article first published online: 22 MAR 2012
- Accepted manuscript online: 6 MAR 2012 11:46AM EST
- Manuscript Revised: 4 MAR 2012
- Manuscript Received: 5 APR 2010
- technology adoption;
- mimetic adoption
Received research suggests that a firm subsidiary's acquisition by a new owner has countervailing effects on the subsidiary's innovation adoption behavior. On one hand, ownership change can make a subsidiary more receptive to innovation by reducing some inertial forces and introducing new resources to overcome others. Alternatively, the costs and demands of an acquisition can draw decision makers' attention away from important innovations in the technological environment. This event history study disentangles these countervailing influences by examining the influences of radio station ownership change on stations' adoptions of HD Radio® technology. The study finds that a change in ownership control does have a positive direct influence on the likelihood of technology adoption, but that it also curtails tendency for subsidiaries to subsequently mimic others' technology adoptions. Copyright © 2012 John Wiley & Sons, Ltd.