A key risk of acquisitions is that a firm may substitute an ability to buy innovations for an ability to produce innovations internally.

Name: A key risk of acquisitions is that a firm may substitute an ability to buy innovations for an ability to produce innovations internally.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Acquisitions can lead to a reliance on external innovations, potentially diminishing a firm's internal innovation capabilities and reducing its incentive to develop new ideas in-house.

A Key Risk of Acquisitions Is That a Firm May