The Effect of Managerial Attention on Post-Acquisition Innovation: The Contingent Role of Entrepreneurial Orientation

Abstract

In this paper, I adopt Attention-based View (ABV) of the firm in order to examine the role of attentional orientation of top executives in M&A context. In high-technology industries, I find that merging firms strategic dissimilarity can produce post-acquisition innovation when the acquirers strategic attention is oriented in entrepreneurial issues, while strategic dissimilarity per se makes negative impact on post-acquisition innovation. I also explore how top executives entrepreneurial orientation influences the impact of prior acquisition experience on post-acquisition innovation, however, no significant interaction is found. The results of the research shed light on the role of managerial attention in M&A context.