A negative effect of acquiring other firms for the purpose of innovation is:
A) innovations cannot be transferred between organizations.
B) the effect it can have on the firm's own ability to produce innovations.
C) innovations may not actually be present in the firm after the purchase is completed.
D) the acquired firm's employees usually leave.

Question

Quizplus · Accepted Answer

Acquiring other firms for innovation can negatively impact the acquiring firm's own innovation capabilities by potentially reducing its focus on internal R&D and creating dependency on external sources for innovation.

A Negative Effect of Acquiring Other Firms for the Purpose