Analysis On The Generative And Evolutionary Mechanism Of Technology Integration Risk After Cross-border M & As For Chinese Enterprises

As China's strong economic growth and the diversified need of enterprises seeking overseas operations, China's oversea M&A activities rose rapidly in recent years. Especially after the financial crisis, overseas M&As have been becoming more and more often for Chinese enterprises to going out and raise their positions in the value chain. And, with the Knowledge-based Economy progress, more and more domestic enterprises adopt oversea technology M&As, intended to obtain the advance technology from foreign companies to enhance their technical capabilities and profitability. However, while the amount of Chinese enterprises that committed outward foreign direct investment increasing year by year, the integration risk increased at the same time.80% of M&A failures stem from post-merger integration. Therefore, this paper studies the generative and evolutionary mechanism of technology integration risk after cross-border M&As for Chinese enterprises.In this paper, our analysis focuses on the enterprises seeking technology by outward M&As. We analyze different factors that impact the post-merger integration, discrimination different indicators of technology integration risks; according to the questionnaire on quantitative analysis of various indicators, we extract several significant factors and accordingly introduced the theory analysis, dynamic simulation models and then the case of Shanghai Auto acquiring South Korea's Ssangyong. At last we give some suggestions to enterprises seeking technologies outward.