Integration and autonomy in Chinese technology-sourcing cross-border M&As: from the perspective of resource similarity and resource complementarity

ABSTRACT

In this paper, we examine the match between resource relatedness and post-merger integration on technology innovation of acquiring firms to find the rationale behind technology-sourcing cross-border mergers and acquisitions (M&As) of Chinese multinational enterprises. Using a sample of 88 Chinese technology-sourcing cross-border M&As, we find that the acquirer will improve technology innovation when greater resource similarity between the acquirer and target firms is matched with a high integration degree and a low target autonomy level. Meanwhile, the acquirer can improve technology innovation when greater resource complementarity is matched with a low level of integration degree in technology-sourcing cross-border M&As. This paper provides the acquiring firms with fresh ideas of how to make the integration decisions of technology-sourcing overseas M&As. We hope to help multinational enterprises to achieve more outstanding technology innovation performance through technology-sourcing overseas M&As in an intense global competitive environment.

KEYWORDS:

• Technology-sourcing cross-border M&As
• China
• resource similarity and complementarity
• post-merger integration
• technology management

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes on contributors

Feiqiong Chen, female, born in 1961 in Hangzhou, China, graduated from School of Business Administration at Zhejiang University, Ph.D., is a professor of School of Economics at Zhejiang University and Ph.D. supervisor. Chen studied in the University of Hannover in 1985, Germany, under the tutelage of Professor Dr PETER BROSCH. Then, she visited as a visiting scholar at the Technical University of Berlin in 1995, Germany, under the tutelage of Professor Dr Klaus Kuenkel. Her main research directions: Strategic Management and Technological Innovation, Outward Foreign Direct Investment, Multinational Enterprises. Chen has been project leader in many professional projects and published over 50 papers in academic journals.

Fei Li, female, born in Hebei province of China in 1989, graduated from the School of Economics at Zhejiang University, is a Ph.D. candidate in the School of Economics at Zhejiang University, majoring in Industrial Economics. She is now studying under her Ph.D. supervisor Professor Feiqiong Chen. Her main research directions: Strategic Management and Technological Innovation, Outward Foreign Direct Investment, Multinational Enterprises.

Qiaoshuang Meng, female, born in Liaoning Province of China in 1991 received her undergraduate degree in economics from Zhejiang University, China. She is currently a Ph.D. candidate majoring in finance at the School of Economics at Zhejiang University, China, under Ph.D. supervisor Professor Feiqiong Chen. Her research interests include Outward Foreign Direct Investment, Corporate Finance and Technological Innovation.

Additional information

Funding

This work was supported by Project of National Natural Science Fund [grant number 71673248]; Key Projects of Philosophy and Social Sciences Research for the Ministry of Education of China [grant number 16JZD020]; Key Project of the National Social Science Fund [grant number 14AJY007]; Key Projects of Zhejiang Province Natural Science [grant number LZ14G020002]; Project of Academy of Financial Research of Zhejiang University [grant number XK16004].