The Impact Of Cultural Differences On Innovation Performance Of Technological M&A

Cross-border M&A as the main way of foreign direct investment got swift and violent development in the 1990s, more and more enterprises treat transnational mergers and acquisitions as an important way to realize international expansion. To improve enterprise innovation ability, transnational technological mergers and acquisitions is an effective way of our country enterprise learning actively, introduce and absorb foreign advanced technology, and an effective way to achieve multinational technology transfer. By means of technological mergers and acquisition to obtain foreign advanced technology and key knowledge base, realize the scale economy effect and scope economy effect of technical level. Due to the complexity and diversity of the transnational technological mergers and acquisitions, many enterprises have not realized the expected performance of the M&A, the traditional point treat cultural differences as the biggest reasons of the failure, many foreign and home studies also show that cultural differences can affect learning collaboration and technology transfer after transnational technological M&A through stable relationships, mental models, innovation mechanism. For example, Lucas(2006) argues that cultural difference seriously restrain the transfer of technology knowledge between two companies after transnational technological M&A. Because our enterprises started late in transnational technological M&A, the research about the impact of cultural differences on multinational technological M&A is relatively less, not enough to understanding cultural differences influence mechanism is insufficient through cross-border mergers and acquisitions to improve technology performance in the emerging economies.Based on the above consideration, we choose high-tech enterprises that have multinational technological acquisition during the period of 1995-2010 as the research object for empirical analysis. With new product output to measure technological innovation performance of M&A, with six dimensions of national cultural differences of Hofstede calculate and measure cultural differences, then introduce the innovation performance of the first year, the second year, the third year and the fourth year of high technology enterprises that have transnational mergers and acquisitions, mainly studies the effects of cultural differences on high technology enterprises’ innovation performance which have transnational technology mergers and acquisitions, and the effect in different industries, then examines the adjustment of the transnational technological M&A.According to the results, in general, cultural differences can bring positive influence to innovative technological M&A performance, and the effect is different in different industries; transnational technological M&A can bring positive influence to innovation performance, and transnational technological M&A is a half moderator variable, and can weaken the negative impact of relative knowledge scale, strengthen the positive influence. Then we give some advices from the national and enterprise level, hope these can give some references to the enterprise that conduct transnational technological M&A.