Research On The Impact Of Technological Mergers And Acquisitions On The Persistence Of Firm Innovation

In the new economic era of China,it is emphasized that the development of enterprises should be driven by innovation.Through persistent innovation,enterprises have the ability to continuously stimulate their own vitality and enhance their core competitiveness,thereby achieving long-term healthy development of enterprises.In the market environment with highly dynamic competition,enterprises expect to determine their own technological positioning and obtain technological competitive advantages to realize persistent innovation,which is not enough to rely on the existing knowledge system of enterprises.Therefore,enterprises need to not only maintain and consolidate existing knowledge,but also constantly seek external knowledge sources.As an effective means for enterprises to acquire external knowledge,technological mergers and acquisitions(M&A)can meet the requirements of improving strategic layout,introducing new technologies and developing new mode.In addition,as the maker of corporate strategy,the individual behavior characteristics of managers have been proved to have an important impact on the formulation and implementation of corporate strategic decisions,managerial overconfidence lead to irrational behaviors.It is worth exploring how enterprises can realize persistent innovation through technological mergers and acquisitions,and how the irrational behaviors of managers can intervene between M&A activities and innovation decisions.In this paper,managerial overconfidence is introduced as a regulating variable to study the impact of technological M&A under different modes on the persistent innovation of enterprises.Based on the different motivations and technical nature of technological M&A,this paper divides technological M&A into three modes,including technology-entry M&A,technology-upgrade M&A and technology-complementation M&A.Based on the “input-output” perspective,persistence of firm innovation is divided into persistence of innovation input and persistence of innovation output.Based on the research of related literature,the research hypothesis of this paper is established through theoretical analysis.Samples of 133 technology mergers and acquisitions from 69 listed companies in the high-tech industry were collected,and the research data in this paper were further collected and sorted out.Stata was used to process the panel data,verify the research hypothesis,and obtain the influence relationship between variables.This paper draws the following research conclusions:(1)Technology-entry M&A and technology-complementation M&A have a significant positive impact on persistence of firm innovation input,while have no significant impact on persistence of firm innovation output;(2)The impact of technology-upgrade M&A on the persistence of firm innovation input is not significant,but have a significant negative impact on the persistence of firm innovation output;(3)Managerial overconfidence plays a positive role in regulating the relationship between technologycomplementation M&A and persistence of firm innovation input,as well as the relationship between technology-upgrade M&A and persistence of firm innovation output.Based on the empirical results,this study provides a reference for enterprises to carry out technological M&A and make innovative decisions.