The transition from strategic technology alliances to mergers and acquisitions: An exploratory study

This paper studies a number of research topics derived from the basic quest ion: do interfirm alliances change into mergers and acquisitions as compani es that were previously co-operating become integrated? The analysis is lim ited to the group of strategic technology alliances, i.e. those interfirm a greements for which joint technology development or technology sharing is p art of the agreement. The paper first explores the literature that refers to the possible transit ion from strategic technology alliances to mergers and acquisitions. Based on this we formulate a number of hypotheses regarding the change in modes o f governance and several dimensions of this process related to the internat ional distribution of transformed alliances, their industry specificity, th e size of firms, and the distribution of contractual and equity agreements. The major finding of our research is that the transformation from strategi c technology alliance to merger and acquisition hardly ever takes place. Th is suggests that alliances and mergers and acquisitions are not part of a r ather smooth continuum but they are first of all different modes of governa nce where one mode certainly does not lead to the other.