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Driving force of industrial technology innovation: coevolution of multistage overseas M&A integration and knowledge network reconfiguration

Feiqiong Chen (School of Economics, Zhejiang University, Hangzhou, China)
Jieru Zhu (School of Economics, Zhejiang University, Hangzhou, China)
Wenjing Wang (School of Economics, Zhejiang University, Hangzhou, China)

Journal of Business & Industrial Marketing

ISSN: 0885-8624

Article publication date: 5 January 2021

Issue publication date: 13 August 2021

581

Abstract

Purpose

The purpose of the paper is to examine the coevolutionary dynamics between multistage overseas mergers and acquisitions (M&A) integration and knowledge network reconfiguration and the impact of this coevolution on industrial technology innovation.

Design/methodology/approach

This paper builds a coevolution analysis framework in stages and constructs structural equation models for empirical tests using the Chinese technology-sourcing overseas M&A events that occurred from 2001 to 2012.

Findings

Overseas M&A integration and knowledge network reconfiguration are in a coevolutionary relationship, driving industrial technology innovation. The acquirer adopts initial integration degree that matches the resource relatedness between the acquiring and acquired parties, promoting initial industrial technology innovation through initial knowledge network reconfiguration. Initial knowledge network reconfiguration will feed back to the M&A integration decision in the mid-to-late stage through increasing knowledge similarity and narrowing network position difference. The higher the improvement of mid-to-late integration degree, the more it can drive mid-to-late industrial technology innovation through mid-to-late knowledge network reconfiguration.

Research limitations/implications

Future research can accurately classify overseas M&A integration stages through case tracking and explore other network attributes.

Practical implications

Practical guidelines are provided for managers on how to implement a multistage overseas M&A integration strategy, optimize knowledge network reconfiguration and promote industrial technology innovation. Significant practical implications are presented, especially in academia, society and quality of life.

Originality/value

Different from the previous research considering M&A integration as a single-stage decision, this paper emphasizes the dynamics of the M&A integration process and explores the coevolution mechanism of multistage overseas M&A integration and knowledge network reconfiguration.

Keywords

Acknowledgements

This work was supported by National Natural Science Foundation of China [grant number 71973127]; National Natural Science Foundation of China [grant number 71673248]; Major Program of the National Social Science Foundation of China[grant number 19VDL018]; Key projects of the Natural Science Foundation of Zhejiang Province [grant number LZ20G020001]; Key Projects of Zhejiang Province Philosophy and Social Sciences Superiority Discipline [grant number 20YSXK01ZD]; Key Projects of Zhejiang Colleges and Universities Humanities and Social Sciences [grant number 2016ZB002]; Special Funding for Teaching and Research Development of Liberal Art Teachers in Zhejiang University [2017].

Citation

Chen, F., Zhu, J. and Wang, W. (2021), "Driving force of industrial technology innovation: coevolution of multistage overseas M&A integration and knowledge network reconfiguration", Journal of Business & Industrial Marketing, Vol. 36 No. 8, pp. 1344-1357. https://doi.org/10.1108/JBIM-07-2020-0329

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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