Cultural Distance,Ownership Form And Technological Innovation Performance Of Chinese Enterprises' Cross-Border M&A

Technological innovation is the soul of an enterprise and the key to its sustainable development.However,due to the rapid development of technology,it is often difficult for enterprises to keep up with the pace of internationalization simply by relying on their own highrisk,high-investment and long-term R&D activities,which makes transnational technology merger and acquisition become an important and effective way for more and more enterprises to actively learn and absorb new technologies and realize transnational technology transfer.Due to the complexity and diversity of cross-border mergers and acquisitions,many enterprises fail to achieve the expected results or even lead to the failure of mergers and acquisitions in the integration stage.According to a study cultural conflicts is the main reason why Chinese companies failed when facing overseas mergers and acquisitions.The cultural distance between the two sides of merger and acquisition will lead to the difficulty in establishing a trust relationship between each other and the different understandings of various ideas such as innovation,which will affect the performance of merger and acquisition,as well as the innovation performance of the enterprise.At the same time,the implementation of transnational merger and acquisition of enterprises in our country,both stateowned enterprises and private enterprises,there is also research shows that the enterprise in the process of cross-border M&A,because itself has the characteristics of enterprises of different ownership of different sensitive degree of cultural distance,so that cultural distance is how much influence to the enterprise innovation performance,form of system of ownership in the process and what kind of role,is worth further thinking and exploring.Based on the above considerations,this paper clarifies the influence mechanism of cultural distance on the innovation performance of enterprises and the regulating role played by the form of ownership on the basis of combing the previous literature.The hypothesis of this paper is put forward: cultural distance has a negative influence on the technological innovation performance of enterprises;The ownership form of state-owned enterprises has a positive regulating effect between cultural distance and innovation performance.To test this hypothesis,this paper takes 2010-2019 for cross-border M&A of enterprises as the research object of empirical analysis,with the merger by the end of the new patent application number to measure innovation performance,using Hofstede's national culture of six dimensional model to measure the distance between countries of the cultural differences,the use of the forms of the ownership of cultural distance and interaction as a moderator variable,based on Chinese enterprises transnational M&A reality,it is concluded that cultural distance for the technological innovation performance of transnational mergers and acquisitions,and corporate ownership forms between the two adjustment.The results show that cultural distance has a significant negative correlation with innovation performance when the purpose,scale,actual absorption capacity,R&D intensity and capital structure of mergers and acquisitions are certain.In addition,the nature of ownership is a moderating variable,that is,under certain other conditions,the ownership form of state-owned enterprises can slightly weaken the adverse effects of cultural distance.But on the whole,despite the existence of positive regulating effect,the negative influence of cultural distance has not disappeared in the transnational M&A of state-owned enterprises.Finally,based on the theoretical and empirical research conclusions,this paper puts forward the relevant countermeasures and Suggestions for enterprises of different ownership to carry out transnational mergers and acquisitions from the perspectives of government and enterprises,in order to provide a theoretical basis for improving the technological innovation performance of transnational mergers and acquisitions in China.The marginal contribution of this paper is mainly reflected in two aspects: on the one hand,the previous researches on mergers and acquisitions mainly focus on developed countries and regions,while the researches on emerging countries are relatively few.This paper studies the innovation performance of transnational mergers and acquisitions from the data of Chinese enterprises' mergers and acquisitions,and expands the research scope of this topic.On the other hand,in the previous research on innovation performance,the interaction term of ownership nature and cultural distance is used as the moderating variable,and the moderating effect of ownership nature on the relationship between cultural distance and innovation performance is clarified by explaining the difference in the sensitivity of enterprises with different ownership nature to cultural distance.The research results of this paper will provide certain reference value for the government to formulate the policy of transnational mergers and acquisitions and the enterprises to carry out the integration of transnational mergers and acquisitions.