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, Kangrui Wang

Research output: Contribution to journalArticle

1 Citation (Scopus)

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.
Original languageEnglish
JournalInternational Journal of Technology Management
Volume78
Issue number4
DOIs
Publication statusPublished - 12 Oct 2018

Keywords

  • mergers and acquisitions
  • technology driven
  • financial performance

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