Simulation of Technology Sourcing Overseas Post-Merger Behaviors in a Global Game Model

Abstract

The abilities to efficiently identify potential innovation profits and form an optimal post-merger strategy are key to evaluating overseas merger and acquisition (MA however, resource complementarity has the opposite effect. The negative interaction effect between resource similarity and complementarity will decrease the degrees of integration. In high-resource-similarity and low-resource-complementarity M&As, a high integration degree and low target autonomy will maximize innovation profit, while for high-resource-similarity and high-resource-complementarity M&As, a high integration degree and target autonomy is best for innovation profit. For low-resource-similarity and high-resource-complementarity M&As, a low integration degree and high target autonomy will be the best post-merger strategy. Model outputs are robust to variations of the parameters.