Evidence suggests that firms using acquisitions as a substitute for internally developed innovations:
A)usually generate more innovation for each research and development dollar spent
B)outperform those that do not
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 firms relying too heavily on acquisitions for innovation eventually encounter performance problems, such as reduced organizational learning and decreased innovation capabilities. This is because they may become overly reliant on external sources for innovation rather than investing in internal R&D capabilities.

Evidence Suggests That Firms Using Acquisitions as a Substitute for Internally