How do firms upgrade innovation capabilities through the coevolution of post-merger integration and network reconstruction? A multiple-case study of Chinese companies
Journal of Organizational Change Management
ISSN: 0953-4814
Article publication date: 8 April 2022
Issue publication date: 24 May 2022
Abstract
Purpose
Post-merger integration (PMI) is driven by coevolving processes. This paper examines the coevolution of dynamic integration strategy and network reconstruction and explores how these processes systematically enable emerging market acquirers to upgrade innovation capabilities.
Design/methodology/approach
This paper conducts a multi-case study based on four Chinese overseas acquisitions of manufacturing firms. The data were collected from interviews and archival documentation.
Findings
This study develops a coevolutionary framework of dynamic integration strategy and network reconstruction to explain processes and mechanisms of an acquirer’s innovation capability upgrading. This framework identifies three network motivations, namely, network access, network connection and network synergy. Under different network motivations, dynamic transitions of the acquirer’s integration strategy coevolve with multi-level reconstruction of its networks. Collectively, they are important mechanisms driving innovation capability moves from imitation innovation to asportation and reimitation innovation and then to independent innovation.
Originality/value
This paper responds to a recent call for more insights into the dynamics of PMI and contributes to the research on emerging market multinational corporations’ post-acquisition integration. By integrating the M&A and networks literature, the paper provides evidence of unexplored mechanism of network changes during PMI. It reveals that how acquirers manage the dynamics of PMI to gradually achieve multi-level reconstruction of their networks. Based on a coevolutionary framework, the paper provides a process perspective on how the coevolution of PMI and network reconstruction promotes the upgrading of innovation capabilities.
Keywords
Acknowledgements
This work was supported by National Natural Science Foundation of China [grant number 71973127]; National Natural Science Foundation of China [grant number 71673248]; Major Program of the National Social Science Foundation of China [grant number 19VDL018]; Key projects of the Natural Science Foundation of Zhejiang Province [grant number LZ20G020001]; Key Projects of Zhejiang Province Philosophy and Social Sciences Superiority Discipline [grant number 20YSXK01ZD]; Key Projects of Zhejiang Colleges and Universities Humanities and Social Sciences [grant number 2016ZB002]; Special Funding for Teaching and Research Development of Liberal Art Teachers in Zhejiang University [2017].
Citation
Chen, F., Wang, W. and Zhu, J. (2022), "How do firms upgrade innovation capabilities through the coevolution of post-merger integration and network reconstruction? A multiple-case study of Chinese companies", Journal of Organizational Change Management, Vol. 35 No. 3, pp. 630-650. https://doi.org/10.1108/JOCM-06-2021-0185
Publisher
:Emerald Publishing Limited
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