How does integration affect industrial innovation through networks in technology-sourcing overseas M&A? A comparison between China and the US

Feiqiong Chen, Huiqian Liu and Yuhao Ge

Journal of Business Research, 2021, vol. 122, issue C, 281-292

Abstract: Overseas mergers and acquisitions (M&A) integration is an effective way to promote home-country industrial innovation. However, much remains unknown about this mechanism. We provide a comprehensive understanding, by taking a resource-based view, focusing on the role of internal and external networks as bridge, and exploring the moderating effect of home-country institution. Based on 119 samples in China and 311 samples in the U.S. of technology-sourcing overseas M&A, structural equation model analysis reveals that in a more developed home-country institution, American acquirers’ appropriate integration matched with resource relatedness significantly improves internal network cohesion and external network position, promoting industrial innovation. In contrast, constrained by a less developed home-country institution, Chinese acquirers’ internal network cohesion improvement is only significant in low-degree integration matched with high-resource-complementarity and low-resource-similarity, and the mediating effect of external network position improvement is significantly weaker than that of American. Research conclusions provide insights into the catching-up of latecomers.

Keywords: Post-merger integration; Industrial innovation; Internal network; External network; Institutional comparison (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296320305531
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:122:y:2021:i:c:p:281-292

DOI: 10.1016/j.jbusres.2020.08.040

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().