Acquihiring: A new process for innovation and organizational learning

Abstract

There’s a new process, called “acqui-hiring”, that is emerging among the largest technology companies, aiming for innovation and a stronger competitive position. In this process, a start-up is bought not just for its assets or patents, but above all for its human capital. In this way, acqui-hiring is becoming an alternative strategy that aims to recruit not just based on individual talent, but on the synergy of entire teams with proven, successful projects. This paper aims to give an academic contribution to a better comprehension of this strategy’s success for organizations, in fostering innovation and consolidating a competitive position. This work presents the theoretical background at the basis of the adoption of the acqui-hiring strategy, which includes studies on organizational learning and the dynamic capabilities. The process of acqui-hiring is also described, focusing primarily on the post-acquisition phase, and on some key points from research being conducted on an Italian firm.