Simulation of Technology Sourcing Overseas Post-Merger Behaviors in a Global Game Model

Feiqiong Chen (), Qiaoshuang Meng () and Fei Li ()
Additional contact information
Feiqiong Chen: http://mypage.zju.edu.cn/0096065

Journal of Artificial Societies and Social Simulation, 2016, vol. 19, issue 4, 13

Abstract: The abilities to efficiently identify potential innovation profits and form an optimal post-merger strategy are key to evaluating overseas merger and acquisition (M&A) performances. The paper uses a global game with asymmetric payoff structure and multi-agent simulation methods to analyze the optimal overseas post-merger strategy. We model three stages of the M&A processes: merger decision stage, post-merger integration stage, and technology innovation after M&A, to analyze how different resource similarity and resource complementarity of the two companies influence the degree of optimal post-merger integration and target autonomy as well as technology innovation profit after M&A. The agent-based simulation shows that, in overseas M&As, resource similarity has a positive relation with integration and a negative relation with target autonomy; however, resource complementarity has the opposite effect. The negative interaction effect between resource similarity and complementarity will decrease the degrees of integration. In high-resource-similarity and low-resource-complementarity M&As, a high integration degree and low target autonomy will maximize innovation profit, while for high-resource-similarity and high-resource-complementarity M&As, a high integration degree and target autonomy is best for innovation profit. For low-resource-similarity and high-resource-complementarity M&As, a low integration degree and high target autonomy will be the best post-merger strategy. Model outputs are robust to variations of the parameters.

Keywords: Post-Merger Integration; Technology Innovation; Multi-Agent Simulation; Integration Degree; Target Autonomy (search for similar items in EconPapers)
Date: 2016-10-31
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.jasss.org/19/4/13/13.pdf (application/pdf)

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:jas:jasssj:2015-128-3

Access Statistics for this article

More articles in Journal of Artificial Societies and Social Simulation from Journal of Artificial Societies and Social Simulation
Bibliographic data for series maintained by Francesco Renzini ().