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Integration modes, global networks, and knowledge diffusion in overseas M&As by emerging market firms

Integration modes, global networks, and knowledge diffusion in overseas M&As by emerging market... This paper aims to examine how integration modes impact the acquirer knowledge diffusion capacity of overseas mergers and acquisitions (M&As) effected by emerging market firms and the role played by the global innovation network position of the acquiring firms in affecting this relationship.Design/methodology/approachThrough the use of structural equation modelling and bootstrap testing, the hypotheses are tested by drawing upon a sample of 102 overseas M&As effected by listed Chinese manufacturing companies.FindingsThe results show that acquirers from emerging countries are unable to increase the knowledge diffusion capacity unless they choose the right post-merger integration mode. This paper also finds that the relationship between integration mode and knowledge diffusion is channelled through the centrality and structural holes of acquirers in the global innovation networks. When considering the combinations of different resource similarities and complementarities of the acquired firms, differences emerge in the integration model and network embedded path of acquirers in emerging countries.Practical implicationsEmerging market multinational enterprises should consider post-merger integration as a crucial facilitator to the crafting of global innovation network positions that promote knowledge diffusion. The choices of integration mode and brand management autonomy should be matched with the resource similarities and complementarities that exist between the acquirer and target firms.Originality/valueBased on the resource orchestration theory and by focussing on network centrality and structural hole as the crucial links, this study provides a nuanced understanding of the relationship between post-merger integration and knowledge diffusion and sheds light on latecomer firms from emerging countries. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Knowledge Management Emerald Publishing

Integration modes, global networks, and knowledge diffusion in overseas M&As by emerging market firms

Li, Fei; Chen, Yan; Liu, Yipeng
Journal of Knowledge Management , Volume 23 (7): 25 – Sep 30, 2019
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References (96)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1367-3270
DOI
10.1108/jkm-03-2018-0204
Publisher site
See Article on Publisher Site

Abstract

This paper aims to examine how integration modes impact the acquirer knowledge diffusion capacity of overseas mergers and acquisitions (M&As) effected by emerging market firms and the role played by the global innovation network position of the acquiring firms in affecting this relationship.Design/methodology/approachThrough the use of structural equation modelling and bootstrap testing, the hypotheses are tested by drawing upon a sample of 102 overseas M&As effected by listed Chinese manufacturing companies.FindingsThe results show that acquirers from emerging countries are unable to increase the knowledge diffusion capacity unless they choose the right post-merger integration mode. This paper also finds that the relationship between integration mode and knowledge diffusion is channelled through the centrality and structural holes of acquirers in the global innovation networks. When considering the combinations of different resource similarities and complementarities of the acquired firms, differences emerge in the integration model and network embedded path of acquirers in emerging countries.Practical implicationsEmerging market multinational enterprises should consider post-merger integration as a crucial facilitator to the crafting of global innovation network positions that promote knowledge diffusion. The choices of integration mode and brand management autonomy should be matched with the resource similarities and complementarities that exist between the acquirer and target firms.Originality/valueBased on the resource orchestration theory and by focussing on network centrality and structural hole as the crucial links, this study provides a nuanced understanding of the relationship between post-merger integration and knowledge diffusion and sheds light on latecomer firms from emerging countries.

Journal

Journal of Knowledge Management – Emerald Publishing

Published: Sep 30, 2019

Keywords: Innovation network; Resource orchestration; Knowledge diffusion; Micro-foundation; Integration mode; Overseas M&As

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