Case study on knowledge transfer control mechanism in the integration stage of cross-border M&A

Volume 8, Issue 4, August 2023     |     PP. 156-179      |     PDF (324 K)    |     Pub. Date: August 15, 2023
DOI: 10.54647/economics790411    95 Downloads     161391 Views  

Author(s)

Fan He, School of management and economics,Beijing Institute of Technology,100081,Beijing,China
Fanchen Meng, School of management and economics,Beijing Institute of Technology,100081,Beijing,China
Shang Gao, School of management and economics,Beijing Institute of Technology,100081,Beijing,China

Abstract
Acquiring and absorbing advanced knowledge of overseas subsidiaries of developed countries is an important task for Chinese enterprises in the stage of cross-border merge and integration. In the process of knowledge transfer, there exist so many problems, such as the quantity and value of knowledge transfer is lower than expected, which need to be solved by appropriate control mechanism. This paper takes Chinese enterprises' successful acquisition overseas developed countries enterprises' as an example,and take the process of acquiring and absorbing knowledge from subsidiaries in the integration stage as the research object, and this article also explores the following two research questions: Firstly, what is the impact of different types of control mechanisms implemented by the Chinese parent company on the amount and value of knowledge acquired by the Chinese parent company after the merger? Secondly, will the type of control mechanism implemented by the Chinese parent company over its overseas subsidiaries be affected by the role played by the acquired overseas subsidiaries? This paper takes shenyang machine tool group to carry out the transnational merger and acquisition and knowledge transfer, on the basis of the case to conduct a case study, and put forward some propositions on the basis of case studies, and with the aid of grounded theory to build the knowledge integration develops slowly model belong to cross-border M&A integration phase , Through a series of discussions, the innovation points of this research are summarized, and new propositions are proposed based on the innovation points, so as to achieve the effect of enriching the theory. On this basis, the general rules of knowledge transfer control mechanism implemented by Chinese enterprises in the stage of cross-border merger and integration are finally obtained.

Keywords
Cross-border mergers and acquisitions; Knowledge transfer; Knowledge integration; Formal control mechanism; Socialized control mechanism; Single case study

Cite this paper
Fan He, Fanchen Meng, Shang Gao, Case study on knowledge transfer control mechanism in the integration stage of cross-border M&A , SCIREA Journal of Economics. Volume 8, Issue 4, August 2023 | PP. 156-179. 10.54647/economics790411

References

[ 1 ] Åberg C, Torchia M (2020) Do boards of directors foster strategic change? A dynamic managerial capa bilities perspective. J Manag Gov 24:655–684. https://doi.org/10.1007/s10997-019-09462-4
[ 2 ] Acciarini C, Brunetta F, Boccardelli P (2020) Cognitive biases and decision-making strategies in times of change: a systematic literature review. Manag Decis Ahead-of-Print. https://doi.org/10.1108/ MD-07-2019-1006
[ 3 ] Adler PS (2001) Market, hierarchy, and trust: the knowledge economy and the future of capitalism. Organ Sci 12:215–234. https://doi.org/10.1287/orsc.12.2.215.10117
[ 4 ] Adler PS, Kwon S-W (2002) Social capital: prospects for a new concept. Acad Manag Rev 27:17–40. https://doi.org/10.2307/4134367
[ 5 ] Adner R, Helfat CE (2003) Corporate efects and dynamic managerial capabilities. Strateg Manag J 24:1011–1025. https://doi.org/10.1002/smj.331
[ 6 ] Al-Debei MM, El-Haddadeh R, Avison D (2008) Defning the business model in the new world of digi tal business. In: Proceedings of the 14th Americas conference on information systems AMCIS’08. Toronto, Canada, pp 1–11. https://www.semanticscholar.org/paper/Defning-the-Business-Modelin-the-New-World-of-Al-Debei-El-Haddadeh/ec87172d69171cb545155ba13c3256776bca03d6
[ 7 ] Alguezaui S, Filieri R (2010) Investigating the role of social capital in innovation: sparse versus dense network. J Knowl Manag 14:891–909. https://doi.org/10.1108/13673271011084925
[ 8 ] Ali-Hassan H, Nevo D, Wade M (2015) Linking dimensions of social media use to job performance: the role of social capital. J Strateg Inf Syst 24:65–89. https://doi.org/10.1016/j.jsis.2015.03.001
[ 9 ] Andrews R (2010) Organizational social capital, structure and performance. Hum Relat 63:583–608. https://doi.org/10.1177/0018726709342931
[ 10 ] Aspara J, Lamberg J-A, Laukia A, Tikkanen H (2013) Corporate business model transformation and inter-organizational cognition: the case of Nokia. Long Range Plan 46:459–474. https://doi.org/10.1016/j.lrp.2011.06.001
[ 11 ] Baden-Fuller C, Haefiger S (2013) Business models and technological innovation. Long Range Plan 46:419–426. https://doi.org/10.1016/j.lrp.2013.08.023
[ 12 ] Beck JB, Wiersema MF (2013) Executive decision making: linking dynamic managerial capabilities to the resource portfolio and strategic outcomes. J Leadersh Organ Stud 20:408–419. https://doi.org/10.1177/1548051812471722