IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i17p12883-d1225350.html
   My bibliography  Save this article

The Impact of Technological Mergers and Acquisitions on Enterprise Innovation: A Review

Author

Listed:
  • Lingling Suo

    (School of Management, Beijing Union University, Beijing 100101, China)

  • Kezhi Yang

    (School of Business, Beijing Technology and Business University, Beijing 100048, China)

  • Hao Ji

    (School of Management, Beijing Union University, Beijing 100101, China)

Abstract

Innovation is the source of competitive advantage for enterprises. In the context of global industrial upgrading and increasingly fierce technological competition, enhancing innovation capabilities is key to enterprises’ success. Technology mergers and acquisitions have become an important way for enterprises to acquire external technology, to enhance their innovation capabilities, and to achieve rapid development. Many scholars have extensively researched technology mergers and acquisitions and enterprise innovation. This paper summarizes the relevant research literature according to different research contents. The research content includes the motivation for technology mergers and acquisitions, analyzing the impact mechanism and the path of technology mergers and acquisitions regarding enterprise innovation from the perspectives of technology relevance, the technology absorption capacity, the institutional environment, and corporate governance, as well as related research on the consequences of technology mergers and acquisitions for enterprise innovation and measuring methods for technology mergers and acquisitions and enterprise innovation. This paper summarizes and organizes the relevant literature, aiming to find research directions and enrich future research fields by summarizing it. This effort provides important theoretical support for the strategic decision-making of enterprise technology mergers and acquisitions under the guidance of innovation, and it also provides a reference for further optimizing the innovation incentive environment.

Suggested Citation

  • Lingling Suo & Kezhi Yang & Hao Ji, 2023. "The Impact of Technological Mergers and Acquisitions on Enterprise Innovation: A Review," Sustainability, MDPI, vol. 15(17), pages 1-17, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:17:p:12883-:d:1225350
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/17/12883/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/17/12883/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Matthew Rhodes‐Kropf & David T. Robinson, 2008. "The Market for Mergers and the Boundaries of the Firm," Journal of Finance, American Finance Association, vol. 63(3), pages 1169-1211, June.
    2. Jensen, Michael C. & Ruback, Richard S., 1983. "The market for corporate control : The scientific evidence," Journal of Financial Economics, Elsevier, vol. 11(1-4), pages 5-50, April.
    3. Luca Dezi & Enrico Battisti & Alberto Ferraris & Armando Papa, 2018. "The link between mergers and acquisitions and innovation," Management Research Review, Emerald Group Publishing Limited, vol. 41(6), pages 716-752, March.
    4. Shaker A. Zahra & Gerard George, 2002. "The Net-Enabled Business Innovation Cycle and the Evolution of Dynamic Capabilities," Information Systems Research, INFORMS, vol. 13(2), pages 147-150, June.
    5. Marianna Makri & Michael A. Hitt & Peter J. Lane, 2010. "Complementary technologies, knowledge relatedness, and invention outcomes in high technology mergers and acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 31(6), pages 602-628, June.
    6. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    7. Hang Wu & Yiying Qu, 2021. "How Do Firms Promote Green Innovation through International Mergers and Acquisitions: The Moderating Role of Green Image and Green Subsidy," IJERPH, MDPI, vol. 18(14), pages 1-16, July.
    8. Gautam Ahuja & Riitta Katila, 2001. "Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 197-220, March.
    9. Cassiman, Bruno & Colombo, Massimo G. & Garrone, Paola & Veugelers, Reinhilde, 2005. "The impact of M&A on the R&D process: An empirical analysis of the role of technological- and market-relatedness," Research Policy, Elsevier, vol. 34(2), pages 195-220, March.
    10. Irwin, Kris & Gilstrap, Collin & McDowell, William & Drnevich, Paul & Gorbett, Abigail, 2022. "How knowledge and uncertainty affect strategic international business investment decisions: Implications for cross-border mergers and acquisitions," Journal of Business Research, Elsevier, vol. 139(C), pages 831-842.
    11. Ornaghi, Carmine, 2009. "Mergers and innovation in big pharma," International Journal of Industrial Organization, Elsevier, vol. 27(1), pages 70-79, January.
    12. Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer, 1999. "Corporate Ownership Around the World," Journal of Finance, American Finance Association, vol. 54(2), pages 471-517, April.
    13. Christofi, Michael & Vrontis, Demetris & Thrassou, Alkis & Shams, S.M. Riad, 2019. "Triggering technological innovation through cross-border mergers and acquisitions: A micro-foundational perspective," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 148-166.
    14. Xinlei Zhao, 2009. "Technological Innovation and Acquisitions," Management Science, INFORMS, vol. 55(7), pages 1170-1183, July.
    15. Ferreira, Miguel A. & Matos, Pedro, 2008. "The colors of investors' money: The role of institutional investors around the world," Journal of Financial Economics, Elsevier, vol. 88(3), pages 499-533, June.
    16. Fama, Eugene F. & Jensen, Michael C., 1985. "Organizational forms and investment decisions," Journal of Financial Economics, Elsevier, vol. 14(1), pages 101-119, March.
    17. Hagedoorn, John & Duysters, Geert, 2000. "The Effect of Mergers and Acquisitions on the Technological Performance of Companies in a High-tech Environment," Research Memorandum 010, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    18. Schweisfurth, Tim G. & Raasch, Christina, 2018. "Absorptive capacity for need knowledge: Antecedents and effects for employee innovativeness," Research Policy, Elsevier, vol. 47(4), pages 687-699.
    19. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    20. Seru, Amit, 2014. "Firm boundaries matter: Evidence from conglomerates and R&D activity," Journal of Financial Economics, Elsevier, vol. 111(2), pages 381-405.
    21. Jan Bena & Kai Li, 2014. "Corporate Innovations and Mergers and Acquisitions," Journal of Finance, American Finance Association, vol. 69(5), pages 1923-1960, October.
    22. Brickley, James A. & Zimmerman, Jerold L., 2010. "Corporate governance myths: Comments on Armstrong, Guay, and Weber," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 235-245, December.
    23. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
    24. Luca Dezi & Enrico Battisti & Alberto Ferraris & Armando Papa, 2018. "The link between mergers and acquisitions and innovation," Management Research Review, Emerald Group Publishing Limited, vol. 41(6), pages 716-752, March.
    25. Ghosh, Arghya & Kato, Takao & Morita, Hodaka, 2017. "Incremental innovation and competitive pressure in the presence of discrete innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 135(C), pages 1-14.
    26. Schweisfurth, Tim G. & Raasch, Christina, 2018. "Absorptive Capacity for Need Knowledge: Antecedents and Effects for Employee Innovativeness," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 47(4), pages 687-699.
    27. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    28. Christoph Grimpe & Katrin Hussinger, 2014. "Resource complementarity and value capture in firm acquisitions: The role of intellectual property rights," Strategic Management Journal, Wiley Blackwell, vol. 35(12), pages 1762-1780, December.
    29. Colombo, Massimo G. & Rabbiosi, Larissa, 2014. "Technological similarity, post-acquisition R&D reorganization, and innovation performance in horizontal acquisitions," Research Policy, Elsevier, vol. 43(6), pages 1039-1054.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carles Méndez-Ortega & Mercedes Teruel, 2020. "To acquire or not to acquire: the effects of acquisitions in the software industry," Journal of Evolutionary Economics, Springer, vol. 30(3), pages 793-814, July.
    2. Li, Shi & Ang, James S. & Wu, Chaopeng & Yang, Shijie, 2021. "Valuing technological synergies in mergers," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    3. Voss, Philipp S.R., 2022. "Innovation Performance in Healthcare M&A: An Empirical Analysis," Junior Management Science (JUMS), Junior Management Science e. V., vol. 7(4), pages 1164-1192.
    4. Shuwaikh, Fatima & Dubocage, Emmanuelle, 2022. "Access to the Corporate Investors' Complementary Resources: A Leverage for Innovation in Biotech Venture Capital-Backed Companies," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    5. Méndez Ortega, Carles, & Teruel, Mercedes, 2018. "To acquire or not to acquire: Mergers and Acquisitions in the Software Industry," Working Papers 2072/307043, Universitat Rovira i Virgili, Department of Economics.
    6. Shafique, Muhammad & Hagedoorn, John, 2022. "Look at U: Technological scope of the acquirer, technological complementarity with the target, and post-acquisition R&D output," Technovation, Elsevier, vol. 115(C).
    7. Schön, Benjamin & Pyka, Andreas, 2013. "The success factors of technology-sourcing through mergers & acquisitions: An intuitive meta-analysis," FZID Discussion Papers 78-2013, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    8. Aghasi, Keivan & Colombo, Massimo G. & Rossi-Lamastra, Cristina, 2017. "Acquisitions of small high-tech firms as a mechanism for external knowledge sourcing: The integration-autonomy dilemma," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 334-346.
    9. Maria Chiara Di Guardo & Kathryn Rudie Harrigan & Elona Marku, 2019. "M&A and diversification strategies: what effect on quality of inventive activity?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 669-692, September.
    10. Galina Besstremyannaya & Richard Dasher & Sergei Golovan, 2018. "Growth through acquisition of innovations," Working Papers w0247, New Economic School (NES).
    11. Kathryn Rudie Harrigan & Maria Chiara Guardo & Bo Cowgill, 2017. "Multiplicative-innovation synergies: tests in technological acquisitions," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1212-1233, October.
    12. Stienstra, Miranda, 2020. "The determinants and performance implications of alliance partner acquisition," Other publications TiSEM 7fdee0c2-d4d2-4f5b-95e3-2, Tilburg University, School of Economics and Management.
    13. Marc Essen & J. Oosterhout & Michael Carney, 2012. "Corporate boards and the performance of Asian firms: A meta-analysis," Asia Pacific Journal of Management, Springer, vol. 29(4), pages 873-905, December.
    14. Walter Park & Ralph Sonenshine, 2012. "Impact of Horizontal Mergers on Research & Development and Patenting: Evidence from Merger Challenges in the U.S," Journal of Industry, Competition and Trade, Springer, vol. 12(1), pages 143-167, March.
    15. Chao Chen & Jianmin Liu & Ying Tao & Wenye Fan & Jingjing Qian, 2024. "Analysis of Technology Mergers and Acquisitions on Enterprises’ Green Technology Innovation: Moderating Effects of Environmental Regulation and Environmental Uncertainty," Sustainability, MDPI, vol. 16(20), pages 1-31, October.
    16. Galina Besstremyannaya & Richard Dasher & Sergei Golovan, 2019. "Growth through acquisition of innovations," Working Papers w0247, Center for Economic and Financial Research (CEFIR).
    17. Feiqiong Chen & Yao Chen & Fangfang Zhong, 2017. "Integration decision-making in technology-sourcing cross-border M&As: a mathematical model," Computational and Mathematical Organization Theory, Springer, vol. 23(4), pages 524-545, December.
    18. Liang, Yanze & Giroud, Axèle & Rygh, Asmund, 2022. "Strategic asset-seeking acquisitions, technological gaps, and innovation performance of Chinese multinationals," Journal of World Business, Elsevier, vol. 57(4).
    19. Roland Bel, 2018. "A property rights theory of competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1678-1703, June.
    20. Adrian Lüthge, 2020. "The concept of relatedness in diversification research: review and synthesis," Review of Managerial Science, Springer, vol. 14(1), pages 1-35, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:17:p:12883-:d:1225350. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.