Can international acquisition be an effective way to boost innovation in developing countries

Purpose – The purpose of this paper is to examine the effects of international acquisition activities on performance and its role in innovation build‐up in developing countries.Design/methodology/approach – A case study was used to understand the deep integration process of acquisition process. The theory behind the study is the relationship of innovation management and merger and acquisition activities.Findings – Acquiring a company with higher technologies has more risks and it requires the acquiring company to master a fast learning capability. The key to a successful international technology acquisition for a developing country is to leverage technology dynamics and build up a high‐level learning capability to absorb tacit knowledge.Research limitations/implications – An in‐depth case study was adopted. Further quantitative research may be needed to test our research outcome here.Practical implications – The case study may provide valuable reference for the companies aiming to catch up via internation...