A Study On Chinese Technology Sourcing Overseas M&A Integration

The increasingly fierce global competition makes overseas technology sourcing mergers and acquisitions become the primary way for enterprises to participate in international competition and also the academic research hotspot. From a practical point of view, more and more Chinese enterprises have realized that in technology sourcing overseas M&A synergy effect can not be achieved in the lace of the M&A integration problems. From a theoretical point of view, what is the best degree of integration for M&A revenue is always a vexed topic about technology sourcing overseas M&A in developing countries, and there are two aspects of the mainstream views which can be summarized as the synergy effect and the friction effect. For technology sourcing overseas M&A, tha answer to which of the two effects in merger integration success plays a leading role is difficult to reach an agreement in theoretical circles. Thererfore, the theoretical circles do not have a complete theoretical framework for analysis on synergy and friction effects in technology sourcing overseas M&A integration.From a different perspective, this study takes both resource similarity and complementarity in M&A integration as the starting point. Along the idea of resource similarity, complementarity and their interaction effect, we will carry out a study of the integration in overseas technology sourcing M&A. Theoretical research with simulation experiments, statistical evidence and cross-border multi-case studies will test and support the development of the theory. Emphasizing on resource similarity, complementarity and their interaction effect, we first analyze the mechanism of integration in overseas technology sourcing M&A using mathematical models of the theory, and secondly carry out dynamic simulation on different stages. Third, we build a quantitative assessment system of integration in overseas technology sourcing M&A. And then we propose an empirical study, using data from Chinese enterprises. Fourth, on this basis, we propose best match about integration in overseas technology sourcing M&A through a comparative analysis of multiple cases, providing theoretical and practical guidance for Chinese enterprises. In the theoretical part of this paper, by a review of domestic and foreign classic literature, we proposed that research on technology sourcing overseas M&A needs resource similarity and complementarity basis to establish a sound theoretical framework and mathematical model. In theoretical mechanism analysis, we propose the concept of resource similarity, resource complementarity, and the interaction effect between them. On that basis, indifferent combination of resource similarity and complementarity, we analyze the corresponding optimal degree of merger integration from a theoretical point of view, and put forward the core theoretical assumptions. Along with the ideas of the theoretical mechanism of this paper, we carry on deep analysis on single enterprise behavior in the different situation of resource similarity with the combination of complementarity on the basis of classic monopolistic competition model of technology sourcing overseas M&A.In the simulation part, this paper uses netlogo software platform to carry out multi-agent dynamic simulation study. For three cases in technology sourcing overseas M&A (strong similarity, weak complementarity; weak similarity, strong complementarity; strong similarity, strong complementarity), we put the degree of integration, overall integration revenue, and marginal integration revenue into the scope of the dynamic simulation study. The simulation study makes up the lack of multiple enterprise integration behavior in integrated mathematical model overseas by the dynamics of data experiments and supports the core assumptions in the theoretical part.In the empirical research of this paper, we summarize the sample library of Chinese listed companies with experience of technology sourcing overseas M&A. Using publicly available data supplemented by questionnaire data, we construct the quantitative system of integration, resources similarity, and resource complementarity. Through integrated using z variety of measurement methods, such as facter analysis. Logistic regression and structural equation model, we complete the empinca:researcr on resource similarity, complementarity, and their interaction effect. Certainly they play an important role in overseas M&A integration. On that basis, we carry out technology sourcing overseas M&A empirical studies to verify the theoretical assumptions of the theoretical part.In the case study part, we take the classic Chinese enterprises technology sourcing overseas M&A cases of Geely’s acquisition of Volvo. BYJC’s acquisition of Coburg, Wanxiang’s acquisition of UAI, and Huali’s acquisition of Philips’ CDMA department. Through similarity and complementarity perspective in above several M&A cases, we take analysis on the synergy effect and friction effect from the depth of integration and target autonomy. Also, we take depth analysis on the behavior of integration, which responds to the theoretical assumptions and to provide practical support for the theoretical assumptions. On the basis of the analysis of the lateral contrast with cases, this paper sums up the characteristics of Chinese enterprises technology sourcing overseas M&A, as well as the corresponding optimal integration strategy, providing theoretical and practical guidance for Chinese enterprises’ overseas technology sourcing M&A activities.