Enhancing performance of cross-border mergers and acquisitions in developed markets: The role of business ties and technological innovation capability

Cong Cheng and Monica Yang

Journal of Business Research, 2017, vol. 81, issue C, 107-117

Abstract: This study examines the determinants of performance of cross-border mergers and acquisitions (cross-border M&As) in developed markets initiated by firms from emerging markets. Drawing on social network theory and organizational innovation literature, we hypothesize that business ties of the acquiring firm increase performance of cross-border M&As via enhancing the acquiring firm's technological innovation capability and that environmental turbulence strengthens this mediating model. Moreover, the interplay of cultural distance and technological innovation capability would decrease performance of cross-border M&As. To test the model, we collected data from 186 Chinese firms initiating cross-border M&As in developed markets. As predicted, we found that (1) technological innovation capability of the acquiring firm positively mediates the relationship between business ties and performance of cross-border M&As; (2) environmental turbulence positively moderates the relationship between business ties and technological innovation capability; and (3) cultural distance negatively moderates the relationship between technological innovation capability and performance of cross-border M&As.

Keywords: Business ties; Technological innovation capability; Environmental turbulence; Cultural distance; Performance of cross-border M&As (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296317302813
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:81:y:2017:i:c:p:107-117

DOI: 10.1016/j.jbusres.2017.08.019

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 ().