Studies examining the innovation impact of acquisitions have emphasized the key role of the technology relatedness between the acquiring and acquired firms. This paper aims to extend our understanding of the technology relatedness-post-acquisition innovation performance link by drawing on studies that have focused attention on the post-acquisition reorganization of the combined firms. While combining these two perspectives, we develop a conceptual model that highlights i) how the technology relatedness of the combining firms influences the extent of the post-acquisition rationalization of the firms’ technological assets and the retention or replacement of the top management of their R&D operations, two key aspects of the post-acquisition reorganization process; ii) how the innovation impact of post-acquisition reorganization decisions is mediated positively by the increase in the productivity of the combined firm’s R&D operations and negatively by the loss of ke
y inventors. In the empirical section of the paper we use in depth information from 31 case studies of horizontal acquisitions in high- and medium-tech industries to test the conceptual model through PLS techniques.