Technological M&A for Core Technology Change: A Feasible Strategy for Incumbent Firms to Overcome the Challenges in the Steel IndustryTechnologische M&A für Veränderung der Kerntechnologien: Eine mögliche Strategie für etablierte Unternehmen, um die Herausforderungen in der Stahlindustrie zu überwinden

Firms in the steel industry facing the declining stage of the industry life cycle need to renew their core technology portfolio. Technological M&A is a popular corporate strategy for core technology change in other high tech industries such as biopharmaceuticals or information and telecommunications. However, the objectives of steel industry M&As are more focused on achieving economies of scale or entering into new markets, and a core technology change has rarely been a purpose of technological M&As in the steel industry. This research introduces technological M&A as a tool for core technology change, especially to the steel industry. Further, comparing with traditional M&A deals of the steel industry, the study suggests key factors for a successful core technology renewal through technological M&As.