Post-M&A technological capability-building of emerging market firms in China: the case of Lenovo |
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Authors: | Haiyan Yu Jianwei Dang |
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Affiliation: | 1. Department of Information Management, Faculty of Economics and Management, East China Normal University, Shanghai, China;2. Department of Innovation and Entrepreneurship, Business School, University of International Business and Economics, Beijing, China |
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Abstract: | Technological acquisitions have become a strong motivation for cross-border merger and acquisition (M&A) activities by firms in emerging countries. However, whether these companies achieve their objectives remains an open question. This article presents a case study of Lenovo’s acquisition of IBM’s PC division with a focus on inventor productivity after acquisition. Our case study suggests that while a ‘light-touch’ integration approach helped avoid the all-too-common post-M&A productivity drop, intra-firm knowledge transfers to veteran inventors of the acquirers remained difficult due to the knowledge gap. However, M&A events create other opportunities to improve the technological capability of the acquiring company by sourcing new talent globally, offering unignorable merit that justifies outbound M&A activities by emerging market firms. |
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Keywords: | China inventor Lenovo outbound merger and acquisition PRC technological capability |
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