How does the cross-border M&A network affect digital innovation? Empirical evidence from Chinese listed companies

This paper studies the relationship between cross-border M&A networks and digital innovation using data from Chinese listed companies and cross-border merger and acquisition (M&A) deals completed between 2009 and 2020. Findings show that cross-border M&A networks have a long-term cumulative promoting effect on digital innovation, whereas a short-term effect is not apparent. The results also show that cross-border M&A networks can improve digital innovation by promoting company resource acquisition. A weakening effect of environmental uncertainty in cross-border M&A networks promoting digital innovation is also identified. Interestingly, we also found that cross-border M&A networks have a more significant long-term impact on digital innovation among companies with large professional background differences and minor financial background differences in top management teams, companies in low-tech and non-digital industries, and large and mature companies.