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Cross-border post-merger integration and technology innovation: A resource-based view

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  • Chen, Feiqiong
  • Meng, Qiaoshuang
  • Li, Xueying

Abstract

We construct a Markov game of cross-border post-merger integration on technology innovation. The acquirer chooses the integration degree considering resource backgrounds and then makes innovation collaborations. Equilibrium analysis and numerical examples suggest that when resource similarity is high and resource complementarity is low, the acquirer should choose a high integration degree to improve the number of innovation collaborations and increase technology innovation. When resource similarity is low and complementarity is high, the acquirer should choose a low integration degree. When resource similarity and complementarity are both high, the acquirer should choose a medium integration degree. We run quantile regressions using samples of cross-border mergers and acquisitions proposed by acquirers from China, Japan and the United States in the period of 2000–2013. The dynamic game and quantile regressions altogether provide new insight and empirical evidence for understanding post-merger integration's effect on technology innovation under different resource backgrounds. The paper provides theoretical direction for choosing proper cross-border post-merger integration degree to improve innovation with resource-based view.

Suggested Citation

  • Chen, Feiqiong & Meng, Qiaoshuang & Li, Xueying, 2018. "Cross-border post-merger integration and technology innovation: A resource-based view," Economic Modelling, Elsevier, vol. 68(C), pages 229-238.
    • Handle: RePEc:eee:ecmode:v:68:y:2018:i:c:p:229-238
    DOI: 10.1016/j.econmod.2017.07.012
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    Cited by:

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    2. Qiao, Lu & Dong, Weijia & Lv, Xin, 2023. "The heterogeneous impacts of M&As on renewable energy firms’ innovation: Comparative analysis of China, the US and EU," International Review of Economics & Finance, Elsevier, vol. 87(C), pages 306-323.
    3. Duan, Yunlong & Deng, Zhiqing & Liu, Hanxiao & Yang, Meng & Liu, Meiwu & Wang, Xiang, 2022. "Exploring the mediating effect of managerial ability on knowledge diversity and innovation performance in reverse cross-border M&As: Evidence from Chinese manufacturing corporations," International Journal of Production Economics, Elsevier, vol. 247(C).
    4. Chen, Feiqiong & Liu, Huiqian & Ge, Yuhao, 2021. "How does integration affect industrial innovation through networks in technology-sourcing overseas M&A? A comparison between China and the US," Journal of Business Research, Elsevier, vol. 122(C), pages 281-292.
    5. Xiaoxu Zhang & Yu Song & Hongyu Liu, 2023. "Too Much of a Good Thing? The Impact of Serial M&A on Innovation Performance," Sustainability, MDPI, vol. 15(12), pages 1-23, June.
    6. Li, Chang & Yang, Lianxing, 2020. "Import to invest: Impact of cultural goods on cross-border mergers and acquisitions," Economic Modelling, Elsevier, vol. 93(C), pages 354-364.
    7. Xing, Fei & Hai, Mengdie & Cai, Jiayao, 2023. "Network centrality and technology acquisitions: Evidence from China's listed business groups," Economic Modelling, Elsevier, vol. 120(C).
    8. Liang, Yanze & Giroud, Axèle & Rygh, Asmund, 2022. "Strategic asset-seeking acquisitions, technological gaps, and innovation performance of Chinese multinationals," Journal of World Business, Elsevier, vol. 57(4).

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    More about this item

    Keywords

    D85; F23; O32; Cross-border post-merger integration; Technology innovation; Resource-based view; Markov game;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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