A Study On Factors Affecting Innovation Performance Of Chinese Technology Sourcing Transnational M&A

With the continuous progress of global economic integration,transnational mergers and acquisitions are intensified.With the rapid development of China's economy,Chinese enterprises grow fast.More and more Chinese enterprises try to get advanced technology by overseas M&A to gain competitive advantage.Many companies successfully crossed the barriers gaining a leading edge,but there are some cases of failure.Consequently,it is necessary to study the factors affecting innovation performance of Chinese technology sourcing transnational M&A.The paper analyzes the technology sourcing transnational M&A deals initiated by Chinese enterprises over the year from 2003 to 2012,providing a comprehensive analysis on the factors that affect the innovation performance of transnational M&A,and a comparative analysis is made on the selected cases.The results show that the cultural differences between transnational mergers and acquisitions promote the innovation performance to a certain extent.The technical knowledge base and the scale of M&A have positive effect on the innovation performance.The absolute knowledge scale and the relative knowledge scale have significant effect on the innovation performance.The age of enterprise does not have a significant effect on the innovation performance of transnational M&A.According to the results,this paper draws the conclusion that the technological knowledge base,the size of M&A,the absolute knowledge scale and the relative knowledge scale have an important impact on the innovation performance of technology sourcing transnational M&A.Enterprises should take these factors into account when choosing the object of M&A,and then would get better innovation performance.In view of the specific situation of Chinese enterprises,this paper also put forward relevant policy recommendations.