Business Intelligence

Innovating Through Acquisition And Internal Development: A Quarter-Century Of Boundary Evolution At Johnson & Johnson

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Executive Summary

This paper discusses how firms innovate within and across firm boundaries by reconfiguring their resources and business units over time. Focusing on acquisitions and internal development as key aspects of business dynamics, the authors track the evolution of 87 product lines and 88 business units in Johnson & Johnson's medical sector from 1975 to 1997. The paper highlights the dual importance of acquisitions and internal development as sources of value and innovation for a firm, along with the complementary role of business unit reconfiguration.

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