The Impact of Technological Mergers and Acquisitions on Enterprise Innovation: A Review

Abstract

Innovation is the source of competitive advantage for enterprises. In the context of global industrial upgrading and increasingly fierce technological competition, enhancing innovation capabilities is key to enterprises’ success. Technology mergers and acquisitions have become an important way for enterprises to acquire external technology, to enhance their innovation capabilities, and to achieve rapid development. Many scholars have extensively researched technology mergers and acquisitions and enterprise innovation. This paper summarizes the relevant research literature according to different research contents. The research content includes the motivation for technology mergers and acquisitions, analyzing the impact mechanism and the path of technology mergers and acquisitions regarding enterprise innovation from the perspectives of technology relevance, the technology absorption capacity, the institutional environment, and corporate governance, as well as related research on the consequences of technology mergers and acquisitions for enterprise innovation and measuring methods for technology mergers and acquisitions and enterprise innovation. This paper summarizes and organizes the relevant literature, aiming to find research directions and enrich future research fields by summarizing it. This effort provides important theoretical support for the strategic decision-making of enterprise technology mergers and acquisitions under the guidance of innovation, and it also provides a reference for further optimizing the innovation incentive environment.

The moderating effects of the industry competition level and industry diversification on the relationship between the transaction price of mergers and acquisitions and corporate value

“…In these industries, companies use M&A to expand their market reach, achieve growth, and improve operational efficiency (Bhattacharyya, 2019;Jin et al, 2023;Yu & Yan, 2022). Companies in such industries must continuously innovate and improve their performance to maintain and enhance their competitive edge (Ahmed et al, 2023;Suo et al, 2023). Although M&A transaction costs can negatively affect the value of a firm (Segal et al, 2022), they can also be viewed as a compensatory strategy that expands competitive advantage by creating operational synergies through effective resource allocation and management integration, depending on the level of competition.…”

“…For stakeholders assessing firm value, resource allocation toward M&A may be perceived as necessary investments that involve high transaction costs (Long, Luo, Sun, & Zhong, 2023). To maintain and expand their competitive edge, companies operating in such industries require continuous innovation and performance improvement (Ahmed et al, 2023;Suo et al, 2023). Although high transaction costs associated with M&A can negatively impact firm value (Segal, Guthrie, & Dumay, 2022), it can also be seen as a compensatory strategy that can expand competitive advantage for stakeholders by creating operational synergies based on management integration and effective resource allocation, depending on the level of competition.…”

“…Diversifying into various industries through M&A enables companies to develop effective strategies for entering new markets, securing capabilities, and driving long-term growth (Oliveira, Roth, & Ponte, 2003). When growth and innovation opportunities become limited in the current industry, mergers and acquisitions can provide fresh prospects by transferring technology patents and legal rights between different categories (Suo et al, 2023). Studies reveal that external diversification with foreign companies can enhance corporate value compared to internal diversification in the domestic market (Batsakis, Wood, Azar, & Singh, 2018).…”

Influencing Factors and Mechanism of Enterprise Technological Innovation Capability Based on Interpretative Structural Model

“…17-Technological improvements: the capability that enterprise could improve the existing technology [10] .…”