Technology-driven mergers and acquisitions of chinese acquirers: development of a multi-dimensional framework for post-innovation performance

Xiao Zhou, Liliana Mitkova (), Yi Zhang, Lu Huang, Scott Cunningham, Lining Shang, Huizhu Yu and Kangrui Wang
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Xiao Zhou: Xidian University
Liliana Mitkova: LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]
Yi Zhang: UTS - University of Technology Sydney
Lu Huang: BIT - Beijing Institute of Technology
Scott Cunningham: TU Delft - Delft University of Technology
Lining Shang: Baidu
Huizhu Yu: BIT - Beijing Institute of Technology
Kangrui Wang: BIT - Beijing Institute of Technology

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Abstract: While some studies have observed the beneficial impact of mergers and acquisitions (M&As) on a firm's innovation performance in developed countries, others have found the consequences to be neutral or even negative. This article develops an integrated framework to elucidate how the combination of technological relatedness and product relatedness between acquiring and target firms affects post-innovation performance of technology-driven M&As. This performance is investigated by using a set of parameters, namely R&D input, patent and product activity, and the financial results from commercialisation. We conducted case studies on China's high-tech firms derived from three diverse industry sectors, and the empirical results indicate that both types of relatedness between the partners of technology-driven M&As are conducive to the intensification of R&D expenditures. The acquisition of similar technologies and products has more significant effects on R&D input and output, and M&As without technology relatedness have better financial performance, since they lead acquirers to new technology sectors or sub-sectors. In comparison, M&As with technological complementarity and product complementarity have negative effects on related innovation processes in the short term.

Keywords: Mergers and acquisitions; M&As; Technology-driven mergers and acquisitions; Technology relatedness; Product relatedness; Innovation performance (search for similar items in EconPapers)
Date: 2018
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Published in International Journal of Technology Management, 2018, 78 (4), pp.280-309. ⟨10.1504/IJTM.2018.095759⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03612856

DOI: 10.1504/IJTM.2018.095759

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