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R&D Investment Level and Environment as Predictors of Firm Acquisition
Journal of Management Studies
  • Michael Heeley, Colorado School of Mines
  • David R. King, Marquette University
  • Jeffrey Covin, Indiana University - Bloomington
Document Type
Format of Original
24 p.
Publication Date

R&D investments contribute to the development of firm technology resources, and the possession of such resources often increases a firm’s attractiveness as a potential acquisition target. However, the value ascribed to a firm’s technology resources by would-be acquirers may be moderated by its industry’s environmental characteristics. Using data from 2886 firms, we find that investments in R&D predict acquisition likelihood and that R&D investments are most strongly associated with acquisition of firms under conditions of high environmental munificence and dynamism. Theoretical and managerial implications are discussed.


Published version. Journal of Management Studies, Vol. 43 No. 7 (2006): 1513-1536. DOI. © 2006 Wiley. Used with permission.

David R. King was affiliated with the U.S. Air Force at the time of publication.

Citation Information
Michael Heeley, David R. King and Jeffrey Covin. "R&D Investment Level and Environment as Predictors of Firm Acquisition" Journal of Management Studies (2006) ISSN: 0022-2380
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