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

Authors: Xiao Zhou; Liliana Mitkova; Yi Zhang; Lu Huang; Scott Cunningham; Lining Shang; Huizhu Yu; Kangrui Wang

Addresses: School of Economics and Management, Xidian University, No. 266 Xinglong Section of Xifeng Road, Xi'an, Shaanxi 710126, China ' Laboratory LITEM, University Evry Paris Saclay, 2 Facteur Cheval, 91000 Evry, France ' Centre for Artificial Intelligence, Faculty of Information Technology and Engineering, University of Technology Sydney, Broadway, Ultimo, NSW 2007, Australia ' School of Management and Economics, Beijing Institute of Technology, No. 5 South Zhong Guan Cun Street, Haidian, Beijing, 100081, China; Sustainable Development Research Institute for Economy and Society of Beijing, Beijing, China ' Faculty of Technology, Policy and Management, Delft University of Technology, 2600 GA, The Netherlands ' Baidu.com Times Technology (Beijing) Co., Ltd, No. 10 Xibeiwang East Road, Haidian, Beijing, 100193, China ' School of Management and Economics, Beijing Institute of Technology, No. 5 South Zhong Guan Cun Street, Haidian, Beijing, 100081, China ' School of Management and Economics, Beijing Institute of Technology, No. 5 South Zhong Guan Cun Street, Haidian, Beijing, 100081, China

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.

DOI: 10.1504/IJTM.2018.095759

International Journal of Technology Management, 2018 Vol.78 No.4, pp.280 - 309

Received: 12 Oct 2016
Accepted: 24 May 2017
Published online: 22 Oct 2018 *

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