IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i24p10915-d1542613.html
   My bibliography  Save this article

From Technological Integration to Sustainable Innovation: How Diversified Mergers and Acquisitions Portfolios Catalyze Breakthrough Technologies

Author

Listed:
  • Xueguo Xu

    (School of Management, Shanghai University, Shanghai 200444, China)

  • Hetong Yuan

    (School of Management, Shanghai University, Shanghai 200444, China)

  • Xue Lei

    (School of Management, Shanghai University, Shanghai 200444, China)

Abstract

Against the backdrop of intensifying global technological competition and sustainable development challenges, achieving breakthroughs in core technologies has become a significant challenge for Chinese enterprises. While existing research indicates that technological Mergers and Acquisitions (M&As) serve as a crucial pathway for acquiring external innovation resources, the previous literature often examines acquisition events in isolation, overlooking potential synergistic effects among multiple acquisitions implemented within specific periods. Drawing on knowledge recombination theory, this study examines the innovative effects of diversified technological M&A portfolios. We argue that under the dual pressures of digital transformation and sustainable development, enterprises can establish multidimensional knowledge foundations and trigger cross-domain recombination of knowledge elements through implementing different types of technological acquisitions, thereby catalyzing transformative breakthrough innovations that fundamentally reshape technological trajectories that contribute to sustainable competitive advantages. Based on acquisition and patent data from Chinese A-share listed companies from 2012 to 2022, our findings reveal that diversified technological M&A portfolios significantly promote breakthrough innovation through three mechanisms: knowledge distance optimization, cognitive schema reconstruction, and complementarity of innovation elements. Further analysis indicates that this effect is more pronounced in companies with Chief Science Officers (CSOs) and high-tech enterprise qualifications. This research not only enriches theoretical research on technological M&As and innovation management but also provides new practical insights for enterprises seeking to achieve sustainable breakthrough innovations through strategic acquisition deployment.

Suggested Citation

  • Xueguo Xu & Hetong Yuan & Xue Lei, 2024. "From Technological Integration to Sustainable Innovation: How Diversified Mergers and Acquisitions Portfolios Catalyze Breakthrough Technologies," Sustainability, MDPI, vol. 16(24), pages 1-16, December.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:24:p:10915-:d:1542613
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/24/10915/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/24/10915/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wang, Huan & Zheng, Leven J. & Zhang, Justin Zuopeng & Kumar, Ajay & Srivastava, Praveen Ranjan, 2024. "Unpacking complementarity in innovation ecosystems: A configurational analysis of knowledge transfer for achieving breakthrough innovation," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    2. Hyun Ju Jung, 2020. "Recombination sources and breakthrough inventions: university-developed technology versus firm-developed technology," The Journal of Technology Transfer, Springer, vol. 45(4), pages 1121-1166, August.
    3. Marianna Makri & Michael A. Hitt & Peter J. Lane, 2010. "Complementary technologies, knowledge relatedness, and invention outcomes in high technology mergers and acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 31(6), pages 602-628, June.
    4. Bollaert, Helen & Delanghe, Marieke, 2015. "Securities Data Company and Zephyr, data sources for M&A research," Journal of Corporate Finance, Elsevier, vol. 33(C), pages 85-100.
    5. Lei, Xue & Xu, Xueguo, 2024. "Storm clouds over innovation: Typhoon shocks and corporate R&D activities," Economics Letters, Elsevier, vol. 244(C).
    6. Xin Jin & Xue Lei, 2023. "A Study on the Mechanism of ESG’s Impact on Corporate Value under the Concept of Sustainable Development," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    7. Hua Wang & Leven J. Zheng & Justin Zuopeng Zhang & Ajay Kumar & Praveen Ranjan Srivastava, 2024. "Unpacking complementarity in innovation ecosystems : A configurational analysis of knowledge transfer for achieving breakthrough innovation," Post-Print hal-04343873, HAL.
    8. Qu, Guannan & Chen, Jin & Zhang, Ruhao & Wang, Luyao & Yang, Yayu, 2023. "Technological search strategy and breakthrough innovation: An integrated approach based on main-path analysis," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    9. Jan Bena & Kai Li, 2014. "Corporate Innovations and Mergers and Acquisitions," Journal of Finance, American Finance Association, vol. 69(5), pages 1923-1960, October.
    10. Chen-Ju Lin & Ci-Rong Li, 2013. "The Effect of Boundary-Spanning Search on Breakthrough Innovations of New Technology Ventures," Industry and Innovation, Taylor & Francis Journals, vol. 20(2), pages 93-113, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Renyan Mu & Jianhua Rao & Junda Zhu, 2025. "Empowering Breakthrough Innovations Through Digital Technology: The Effects of Digital Technology Depth and Breadth," Sustainability, MDPI, vol. 17(5), pages 1-30, February.
    2. Xue Lei & Jian Xu & Ziyan Zhang, 2025. "Can the Energy Rights Trading System Become the New Engine for Corporate Carbon Reduction? Evidence from China’s Heavy-Polluting Industries," Sustainability, MDPI, vol. 17(18), pages 1-19, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Jie & Zhang, Chuan & Chen, Hanwen, 2025. "Customer risk disclosure and supplier innovation strategy: A risk spillover perspective," Economic Modelling, Elsevier, vol. 147(C).
    2. Huang, Kenneth G. & Su, Yu-Shan & Chen, Jin & Kajikawa, Yuya, 2025. "Shaping the future through developing and managing breakthrough innovations: A new conceptual framework," Technological Forecasting and Social Change, Elsevier, vol. 214(C).
    3. Liao, Wei & Gu, Jianping & Li, Kaijian, 2025. "Roles of related and unrelated external technologies in shaping regional breakthrough technological advantages," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    4. Chen, J. & Elliott, M. & Koh, A., 2020. "Capability Accumulation and Conglomeratization in the Information Age," Cambridge Working Papers in Economics 2069, Faculty of Economics, University of Cambridge.
    5. Shih‐Chu Chou & Yu‐Fang Chu, 2022. "Innovations and earnings non‐synchronicity: evidence from industry M&A activities," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(1), pages 337-367, March.
    6. Gening Yang, 2024. "Knowledge Element Relationship and Value Co-Creation in the Innovation Ecosystem," Sustainability, MDPI, vol. 16(10), pages 1-24, May.
    7. Wang, Yanzhi A. & Yang, Hsiao-Lin, 2024. "Innovation diversity, product diversity and innovation performance," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    8. Cammarano, Antonello & Michelino, Francesca & Lamberti, Emilia & Caputo, Mauro, 2017. "Accumulated stock of knowledge and current search practices: The impact on patent quality," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 204-222.
    9. Zhangfan Cao & Chen Hua & Yan Tong & Xi Wang, 2023. "The crowding‐out effects of innovation information disclosure on peers' innovation: Evidence from innovation‐driven M&As in China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(5), pages 4883-4908, December.
    10. Wu, Dong & Lin, Xinyi & Liu, Tanfei & Li, Jingwen, 2024. "Cross-functional integration and new product development performance: Assessing mediating role of customer-supplier involvement and moderating role of structural empowerment," Technological Forecasting and Social Change, Elsevier, vol. 208(C).
    11. Hsu, Po-Hsuan & Huang, Peng & Humphery-Jenner, Mark & Powell, Ronan, 2021. "Cross-border mergers and acquisitions for innovation," Journal of International Money and Finance, Elsevier, vol. 112(C).
    12. Hong Zhu & Qi Zhu, 2016. "Mergers and acquisitions by Chinese firms: A review and comparison with other mergers and acquisitions research in the leading journals," Asia Pacific Journal of Management, Springer, vol. 33(4), pages 1107-1149, December.
    13. Chen, Jun & Elliott, Matthew & Koh, Andrew, 2023. "Capability accumulation and conglomeratization in the information age," Journal of Economic Theory, Elsevier, vol. 210(C).
    14. Wildmer Daniel Gregori & Udichibarna Bose, 2023. "Does green transition promote green innovation and technological acquisitions?," Working Papers w202305, Banco de Portugal, Economics and Research Department.
    15. Shuwaikh, Fatima & Dubocage, Emmanuelle, 2022. "Access to the Corporate Investors' Complementary Resources: A Leverage for Innovation in Biotech Venture Capital-Backed Companies," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    16. Todtenhaupt, Maximilian & Voget, Johannes & Feld, Lars P. & Ruf, Martin & Schreiber, Ulrich, 2020. "Taxing away M&A: Capital gains taxation and acquisition activity," European Economic Review, Elsevier, vol. 128(C).
    17. Tanveer Hussain & Abubakr Saeed & Hammad Riaz, 2025. "Reputational risk and target selection: An evidence from China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(3), pages 2574-2602, July.
    18. George Chondrakis & Carlos J. Serrano & Rosemarie H. Ziedonis, 2021. "Information disclosure and the market for acquiring technology companies," Strategic Management Journal, Wiley Blackwell, vol. 42(5), pages 1024-1053, May.
    19. Hao Zhou & Jie Lin, 2023. "Impacts of codified knowledge index on the allocation of overseas inventors by emerging countries: evidence from PCT patent activities in China," Scientometrics, Springer;Akadémiai Kiadó, vol. 128(2), pages 877-899, February.
    20. Schwab, Thomas & Todtenhaupt, Maximilian, 2016. "Spillover from the haven: Cross-border externalities of patent box regimes within multinational firms," ZEW Discussion Papers 16-073, ZEW - Leibniz Centre for European Economic Research.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:24:p:10915-:d:1542613. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.