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- Title
HOW DO CROSS-BORDER MERGERS AND ACQUISITIONS IMPROVE INNOVATION QUALITY IN EMERGING MARKET MULTINATIONAL ENTERPRISES? AN INTERACTION PERSPECTIVE BASED ON NETWORK BALANCE AND DIGITAL GAPS.
- Authors
Fei LI; Yan CHEN; Liyezi ZHANG; DUDAŞ, Lavinia
- Abstract
Received multinational enterprise theories are challenged by the progress of digitization. How do emerging-market multinational enterprises utilize cross-border merger and acquisitions to improve innovation quality in the digital economy era? To shed light on this question, we combined the literature on network balance with a digital gap perspective. We conducted a bootstrap repeated-sampling analysis of a sample of 146 overseas mergers and acquisitions conducted by Chinese-listed manufacturing companies between 2001 and2016. We found that network-embedding balance has a positive impact on the quality of post-M&A domestic and international innovation, and that China's digital development has not promoted a positive correlation between network balance and innovation quality. In the presence of a wide digital gap between a firm's home and host countries, network balance can significantly improve the quality of post-overseas M&A domestic innovation; conversely, when this gap is narrow, a firm can use the interaction between network balance and the host country's digital level to improve the quality of its international innovation. Chinese manufacturing enterprises can enhance their ability to obtain highly complex tacit knowledge by increasing their digital level. In this paper, we explain a new mechanism that digital economy emerging-market multinational enterprises can use to construct a balanced network and thus gain global innovation advantages.
- Subjects
CHINA; INTERNATIONAL business enterprises; MERGERS &; acquisitions; EMERGING markets; TACIT knowledge; TECHNOLOGICAL innovations
- Publication
Economic Computation & Economic Cybernetics Studies & Research, 2019, Vol 53, Issue 3, p203
- ISSN
0424-267X
- Publication type
Article
- DOI
10.24818/18423264/53.3.19.12