Study On Knowledge Integration Of Chinese Technology Sourcing Overseas M&As And Innovation Performance

Under the current increasingly complicated and changing business environment, continuing innovation, especially technological innovation, has become the fundamental principles for enterprise survival in the environment full of fierce competition. Technology has also become the most valuable intangible assets and the important innovation fundamentals of the enterprise. Many scholars have put forward that technology is the indispensable knowledge in management and improvement of the existing products and services. Technology is the essential attributes of knowledge. Seeking strategic knowledge resources is among the important motivations of Chinese overseas M&As. But only knowledge integration which transforms and integrates external knowledge into itself can make an enterprise realize organizational innovation.From the perspective of enterprises’ core competence, this article aims to study the relationship and theoretical mechanism between knowledge integration and innovation performance in Chinese enterprises’ technology sourcing overseas M&As, especially emphasizing on knowledge transfer, which is the essential part of knowledge integration. Also it studies the role of enterprise’ core competence, including acquirer’s absorptive capacity of knowledge and its target’s ability to transfer knowledge, in its progress of innovation capability.Based on multi-agent simulation studies and empirical researches on Chinese data, this article draws conclusions that the stronger of acquirer’s knowledge absorptive capacity and target’s ability to transfer knowledge both lead to a stronger innovation performance after M&A; acquirer’s knowledge absorptive capacity and target’s ability to transfer knowledge are complementary and dispensable to each other. By summarizing and analyzing the theoretical mechanisms, simulation experiments and empirical tests, the article finally proposes enlightening advises for Chinese enterprises.