The Impact of Technological Mergers and Acquisitions on Firm’s Innovation Performance: The case of the Chemical Industry

In a rapidly changing environment, for chemical firms, the importance of technological M&As for chemical firms has been increasing over the last decade in order to sustain their competitive position. In this thesis, we studied the impact of technological M&As on firm’s innovation performance in the chemical industry. We therefore conducted a review of the literature identifying the factors related to technological acquisitions, which might have an impact on the innovation ex-post. An exploratory case study on the corporate strategy of Solvay, a leading Belgian chemical group, enabled us to perceive both the drastic metamorphosis of the chemical industry and the relevance of technological acquisitions for a firm to face rapid changes in the competitive landscape. In line with the theory, it allowed us to assess both the importance of technological relatedness for the creation of potential innovation synergies and the key role of an adequate integration to benefit from the valued innovation brought by the acquisition. We found that technological acquisitions had been crucial for Solvay during its transformation to a highly innovative chemical firm. Moreover, we conducted a statistical analysis to assess the effect of technological M&As on the acquirer’s innovation performance at the industry level. We discussed our results in a critical sense. Finally, we close the thesis with a conclusion and openings for future research.