Strategic alliances in tech industry lead to more acquisitions, study finds.
In today's business world, companies can improve innovation by forming partnerships or buying technology from others. This study looks at how companies decide between forming alliances or making acquisitions to boost their innovation. The researchers found that companies are more likely to buy another company if they have worked together in the past. Companies that are more connected in a network of partnerships are more likely to be the ones doing the buying. On the other hand, companies that are less connected are more likely to be bought. So, previous relationships and network connections play a big role in whether a company chooses to form an alliance or make an acquisition in the tech industry.