Strategic asset-seeking acquisitions, technological gaps, and innovation performance of Chinese multinationals

Abstract : We investigate the impact of acquiring similar or complementary technologies on the innovation performance of Chinese multinationals’ strategic asset-seeking M&As in the EU, and whether such impact is contingent upon firm-level and region-level technological gaps. Results show that technological complementarity enhances Chinese multinationals’ innovation performance. Firm-level technological gaps have a positive moderating effect for both complementary and similar technologies. Region-level gaps enhance innovation when Chinese firms acquire similar technologies, but they undermine the positive impact of technological complementarity on innovation performance. We advance understanding of Chinese MNEs’ learning scope and strategic intents in their strategic asset-seeking M&As.