Research on Exaltation Mechanism of Absorptive Capacity about Cross-Border Mergers and Acquisitions Based on System Dynamics Analysis

Abstract

Cross-border mergers and acquisitions process are complex organizational behavior of complex organizations. The existence of cultural barriers, technical barriers, organizational barriers and knowledge distance would affect directly or indirectly absorptive capacity in cross-border M&As, thus affect the performance of knowledge transfer and M&AS strategy. Under the cross-cultural, cross-organizational, cross-environmental background, it is critical to analyze objectively and systematically absorptive capacity status in cross-border M&AS. Absorptive capacity in cross-border M&AS is divided into latent absorptive capacity and actual absorptive capacity in the research. The essence of exaltation mechanism of absorptive capacity is a sort of complex dynamic process that enterprises employ the way of organizational learning to polymerize and couple the knowledge elements of M&AS. As the analysis and research methods on dynamic complexity of system, SD (system dynamic) could integrate organically qualitative and quantitative methods to employ computer simulation technique to construct simulation model to analyze systematically the evolution process and exaltation path, so as to find the discipline of formation and exaltation of absorptive capacity.