A negative effect of acquiring other firms for the purpose of innovation is:

Question

Quizplus · Accepted Answer

Acquiring other firms for the purpose of innovation can have a negative effect on a firm's own ability to produce innovation. This is because the focus may shift towards integrating the acquired firm's innovation capabilities instead of developing its own. The firm may also face challenges in combining the acquired firm's innovation abilities with its own, leading to a loss of momentum in generating new ideas and products.

A Negative Effect of Acquiring Other Firms for the Purpose