The Effect Of Technology M&A On Firm's Innovation Performance

The technological innovation capability of an enterprise plays an important role in enhancing the core competitiveness of enterprises and promoting the transformation and upgrading of enterprises.Getting external knowledge effectively is an important way to improve the company's ability to innovate.As an effective means for companies to effectively acquire external knowledge,technology M&A is favored by more and more information technology companies.This paper studies the effect of technology acquisition of listed companies in the information technology industry in China on innovation performance.This article sorts out the research on technology acquisitions and analyzes the role of technology mergers and acquisitions in improving corporate innovation capabilities.According to the different nature of M&A technology,this paper divides M&A into two types: complementary and replacement.This paper collected 101 technology acquisition data of listed companies in China's information technology industry from 2006 to 2015.Using the classification of technology acquisitions in this paper,we analyzed the quantitative features of complementary technology acquisitions and replacement technology acquisitions.It was found that in the 101 technology acquisitions in this paper,the number of complementary technology acquisition cases reached 70,reaching 69% of all samples,while the number of replacement technology acquisitions was only 31,accounting for 31% of the samples.The number of complementary technology acquisitions is significantly higher than that of replacement technology.In this paper,the patented output represents innovation performance.From the theoretical analysis of the impact of innovation performance,factors such as the number of complementary technology acquisitions,number of replacement technology acquisitions,acquisition ability of acquirers,target knowledge scale and merger management structure are taken as explanatory variables.It includes:selecting the size of the M&A party,the shareholding of the management,the nature of the enterprise industry and the financial indicators of the enterprise as control variables,establishing an econometric model,analyzing the impact of different types of M&A on the company's technical performance.The results show that complementary M&A and M&A technology have a positive effect on corporate innovation performance,and replacement technology M&A is superior to complementary technology M&A.In technology M&A,the target's absolute knowledge scale and the relative knowledge scale have no obvious influence on the innovation performance of the mergers and acquisitions;The technology absorptive capacity of the enterprise has a positive effect on the innovation performance of the company;The managers' shareholding,the scale of the company and the nature of the property rights have no significant impact on the innovation performance.The conclusion of this paper shows that no matter what kind of technology mergers and acquisitions are implemented,the technology capacity of enterprises has played an important role.To achieve good M&A performance,companies must improve their technological absorptive capacity.The assessment of corporate absorptive capacity should be an important part of corporate M&A decisions.