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The influence of subject heterogeneity and absorptive capacity of acquirer on innovation performance in technology-driven M&As

Published online by Cambridge University Press:  20 July 2021

Michael Yao-Ping Peng Open the ORCID record for Michael Yao-Ping Peng [Opens in a new window]  and
Rui Li
Michael Yao-Ping Peng
Affiliation:
School of Economic & Management, Foshan University, Foshan, China
Rui Li*
Affiliation:
Management School, Xi'an University of Architecture and Technology, Xi'an, China
*
*Corresponding author. E-mail: LeeR0104@163.com
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Abstract

This study uses a sample of technological mergers and acquisitions (M&As) of A-share listed companies in the five major high-tech industries from 2012 to 2016, and conducts factor analysis to measure the heterogeneity of these enterprises in terms of financial slack resources, equity resources, and governance structure. On this basis, multivariate regression analysis is utilized to explore the influence of the acquiring firms' heterogeneity on their innovation performance, and the adjustment action of absorptive capacity between heterogeneity and innovation performance. The research results show that the slack financial resources and highly centralized equity structure of enterprises are not conducive to enterprises improving their innovation performance following a technological M&A, while the impact of governance structure on innovation performance following an M&A is similarly not significant. The empirical evidence provided offer insights and a decision reference for technological M&As of high-tech enterprises.

Keywords

Absorptive capacityinnovation performancesubject heterogeneitytechnological merger and acquisition
Type
Research Article
Information
Journal of Management & Organization , Volume 27 , Issue 4 , July 2021 , pp. 650 - 673
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2021

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