<p>Failure to implement effective integration is considered to be the main reason why many cross-border mergers and acquisitions (M&amp;As) fail to achieve expected performance, and how to solve the integration challenge after M&amp;As has been the focus of attention in both academic and practical fields. This paper explores the impact of absorptive capacity on technology integration in cross-border M&amp;As based on the perspective of technology transfer, which is still missing in previous studies. We first establish an evolutionary game model to depict the intrinsic mechanism and evolution paths in the process of technology transfer and enhancement during the M&amp;A integration phase and analyze the key role absorptive capacity plays, and then conduct an empirical study to test the hypothesis using data of Chinese cross-border M&amp;As from 2000 to 2021. The results confirm that the technology integration after cross-border M&amp;As can be regarded as a process of technological knowledge transfer between the two merging parties, and that absorptive capacity helps to enhance the benefits and reduce the costs of technology transfer, so as to promote the implementation of integration. By applying knowledge transfer theory and using the evolutionary game approach to portray the complexity, long-term, and dynamic nature of integration, this study identifies the important impact of absorptive capacity on technology integration, thus advancing the research in the field of post-M&amp;A management.</p>

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The impact of absorptive capacity on technology integration in cross-border M&As: from the perspective of technology transfer

  • Yao Chen

摘要

Failure to implement effective integration is considered to be the main reason why many cross-border mergers and acquisitions (M&As) fail to achieve expected performance, and how to solve the integration challenge after M&As has been the focus of attention in both academic and practical fields. This paper explores the impact of absorptive capacity on technology integration in cross-border M&As based on the perspective of technology transfer, which is still missing in previous studies. We first establish an evolutionary game model to depict the intrinsic mechanism and evolution paths in the process of technology transfer and enhancement during the M&A integration phase and analyze the key role absorptive capacity plays, and then conduct an empirical study to test the hypothesis using data of Chinese cross-border M&As from 2000 to 2021. The results confirm that the technology integration after cross-border M&As can be regarded as a process of technological knowledge transfer between the two merging parties, and that absorptive capacity helps to enhance the benefits and reduce the costs of technology transfer, so as to promote the implementation of integration. By applying knowledge transfer theory and using the evolutionary game approach to portray the complexity, long-term, and dynamic nature of integration, this study identifies the important impact of absorptive capacity on technology integration, thus advancing the research in the field of post-M&A management.