When degree of integration mediates level of acquired ownership and post-acquisition innovation performance: evidence from cross-border technological acquisitions

Hanif N., Wu J., Grant K. A.

Review of International Business and Strategy, vol.33, no.3, pp.440-465, 2023 (Scopus) identifier identifier

  • Publication Type: Article / Article
  • Volume: 33 Issue: 3
  • Publication Date: 2023
  • Doi Number: 10.1108/ribs-10-2021-0144
  • Journal Name: Review of International Business and Strategy
  • Journal Indexes: Scopus
  • Page Numbers: pp.440-465
  • Keywords: Degree of integration, Cross-border technological acquisitions, Level of acquired ownership, Post-acquisition innovation performance
  • TED University Affiliated: No


© 2022, Emerald Publishing Limited.Purpose: The purpose of this study is to test a model for cross-border technological acquisitions (CBTAs) focusing on the level of ownership acquired in the target firm and the acquiring firm's post-acquisition innovation performance (PAIP), with the degree of integration as a mediator, based on the dynamic capability perspective of the resource-based view. This study further concludes the role of the country-of-origin effect (COE) (when emerging economies' acquiring firms purchase technological resources from developed economies' target firms) on the success of the acquiring firms in CBTAs. Design/methodology/approach: Data on CBTAs initiated by 542 acquiring firms was quantified from four high technology industries from 1995 to 2015 for the empirical investigation of the research hypotheses. Hierarchical fixed year effect negative binomial regression technique was used to analyze the proposed model for the success of CBTAs. Findings: The analysis of the CBTAs confirmed that acquiring firms who opt for a higher level of acquired ownership strategy increase the degree of integration of the target firm's technological resource stock. The level of acquired ownership improves the PAIP of the acquiring firms; however, the degree of integration positively accelerates the relationship between the acquired ownership and the PAIP. Considering the COE, acquiring firms that initiated CBTAs from emerging economies to purchase technological resources from developed economies' targets have firm-specific technological capability holes to execute the integration, which negatively impacts the emerging economies acquiring firm's PAIP. Originality/value: This study contributes to the CBTAs literature by exploring the enabling role of the degree of integration between the level of acquired ownership and the PAIP of the acquiring firms. Further, this study put forward empirics on the COE of the acquiring firms for their integrative capability to integrate the target firm's resource stock and subsequent innovation performance.