How do firms respond when close rivals make M&A moves? This paper finds that rivals’ M&A can push firms toward more exploratory innovation and away from exploitative innovation, with especially strong effects when rival acquirers are making exploitative deals, market competition is high, and focal firms have greater financial slack.
Authors and Affiliations:
• Xin Deng (University of Manchester)
• Huma Javaid (Loughborough University)
• Amon Chizema (Loughborough University)
