Research On The Dynamic Simulation Of Shanghai Automotive Industry M&A Integration Based On Sustainable Innovation Capability

The automotive industry is one of the pillar industries in China, playing animportant role in national economic development and social progress. Shanghaiautomotive industry is undoubtedly at the advanced level in the whole country and hasSAIC, the best of the four automotive groups. While seemingly strong, Shanghaiautomotive industry is relatively weak in its sustainable innovation capability whichneeds to be improved.This paper studies how to improve the sustainable innovation capability ofShanghai automotive industry by mergers and acquisitions integration. First of all,according to the theoretical research in related fields at home and abroad, the currentsituation of sustainable innovation capability and mergers and acquisitions integrationof Shanghai automotive industry is analyzed. Secondly, the mergers and acquisitionsintegration model based on the sustainable innovation capability is built through theuse of system dynamics theory and partial strategic map. What’s more, the modeleffectiveness is verified and seven variables such as sales quota of self-owned brand,the maturity of the supply chain, environmental impact factor, corporate sales,government investment, the number of patents granted and entrepreneur factor aresimulated under different strategies. And then their impact is able to be analyzedrespectively. Finally, conclusions and the corresponding policy recommendations aredrawn by the dynamic simulation.Based on extensive literature reading and the combination of qualitative andquantitative research, the research has a certain referential significance for both theoryand practice. On the basis of the existing policy, the recommendations from differentangles such as the policy orientation, market mechanism and structure, industrialchain, new energy, government positioning, cooperation of industry, university andresearch institute and so on have been proposed. This provides support for thegovernment policy on the development of Shanghai automotive industry and helpsaccelerate its sustainable development.