Organization and Strategy Seminar（2019-13）

Topic: CROSS-BORDER TECHNOLOGICAL ACQUISITIONS AND SUBSEQUENT INNOVATION: A LONGITUDINAL STUDY OF EMERGING MARKET MULTINATIONALS

Speaker: Yinuo Tang,University of Hong Kong

Time: Tuesday, 29 October, 10:00-11:30 am

Location: Room 217, Guanghua Building 2

Abstract:

This paper examines how cross-border technological acquisitions in high-tech industries affect subsequent innovation trajectories of acquiring firms using emerging market multinationals (EMNEs) as an example. Drawing on the dynamic capability theory, we develop the logic that innovation improvement of EMNEs resulting from cross-border technological acquisitions (i.e., acquiring technological knowledge from foreign target firms) is evolutionary, emphasizing exploitative innovation in the initial stage and exploratory innovation in the later stage. The geographical focus of innovation enhancement is also evolutionary, emphasizing on serving foreign markets in the initial stage and expanding domestic markets later. Moreover, we find that EMNEs can further enhance their innovative capabilities when target firms are located in developed countries or when they control dominant shares in post-merger entities. A longitudinal study of 5,905 firm-year observations of 296 public firms in technology-intensive industries from 12 emerging markets, which have completed cross-border technological acquisitions from 1995 through 2014, validates the above arguments.

Introduction:

Dr. Yinuo Tang is an assistant professor in strategy and international business department at the School of Business in the University of Hong Kong (HKU). Prior to joining HKU in 2015, he taught at the University of Pittsburgh from 2013 to 2015.

His research aims to understand how firms advance their capability and performance in heterogeneous institutional environments via corporate strategies such as M&A. In particular, he explores the relationship between Emerging Market Firms’ institutional strategies and their competitive advantages in the integrated global market.

His work has been published inJournal of Corporate FinanceandAcademy of Management Best Paper Proceedings.He is also an active concert pianist who has performed at the Forbidden City Hall at Beijing and Lincoln Center at New York City. He is the recipient of the Gold Medal in the amateur category of the 2015 Sixth Seattle International Piano Competition.

Your participation is warmly welcomed!