KNOWLEDGE DYNAMICS, FIRM STRATEGY, MERGERS AND ACQUISITIONS IN THE BIOTECHNOLOGY BASED SECTORS

In this article, a method to map the knowledge base (KB) of firms is developed and applied to the study of strategic changes, mergers and acquisitions. The empirical data are related to three firms, Hoechst, Rhone-Poulenc and Aventis, which resulted from the merger of the first two. Our study shows how the KB of both Hoechst and Rhone-Poulenc changed gradually reflecting their strategic reorientation away from chemistry and towards the life sciences. While the previous transition produced a segmented KB with the chemistry and biology subsets largely separated, the merger led a more closely integrated KB. The KB of some Aventis subsidiaries have been studied as well.