Study On Chinese Overseas M&A Technology Integration

There have been a growing number of overseas M&A in recent years taken by Chinese enterprises and the scale of M&A continues to expand. With the intensification of market competition and the enhancement of product update speed, the enterprise gradually realize the importance of the core technology. More and more enterprises implement overseas M&A to seek for rapid access to foreign advanced technology. The number of successful cases, however, is quite limited. In view of the domestic private enterprises, the main challenge of overseas M&A in future is the lack of the ability to integrate. For the technology sourcing overseas M&A, the biggest challenge is technology integration. Therefore, the study of technology integration is of great significance for domestic enterprise’s technology sourcing overseas M&A.The concept of technology integration is first proposed by Iansiti. Chinese and overseas scholars’supplement promote its continuous development. Current research of technology integration mainly relies on theoretical methods. There is scarcely empirical research. In addition, the current theoretical research of technology integration focuses on technology integration process. While the study of the influence factors of technology integration is rare. Therefore, the purpose of this paper is to adopt structural equation empirical method to explore the impact of technology relatedness on technology integration.In a word, this article discusses different depth of technology similarities and complementarities possible produce synergies effect from the perspective of technology relatedness and their impact on technology integration. At the same time we use structural equation to validate the theory. Then, we use three typical cases to further verify the results. In this paper, the main conclusions are:the degree of technology similarity has a positive effect on the depth of technology integration, while the degree of technology complementarity has a negative effect on the depth of technology integration.