Evidence suggests that firms using acquisitions as a substitute for internally developed innovations
A)are able to offset the loss of research and development competencies by competencies in other areas.
B)extend their time-to-market for new product launches.
C)eventually encounter performance problems.
D)can leverage their core competencies across a broader range of products.

Question

Quizplus · Accepted Answer

Studies have shown that relying solely on acquisitions as a substitute for internal innovation can eventually lead to performance problems, as the acquired companies may not fit well with the acquiring firm's culture and they may not be able to fully integrate their technologies and processes. Additionally, without internal R&D, the acquiring firm may struggle to develop unique technologies or stay ahead of competitors in the long-term.

Evidence Suggests That Firms Using Acquisitions as a Substitute for Internally