ANALYZING THE IMPACT OF TECHNOLOGY MERGERS AND ACQUISITIONS ON THE INNOVATION CAPABILITY OF CORE DEVELOPERS IN CONSTRUCTION FIRMS

ABSTRACT Technology mergers and acquisitions are some of the most important ways to introduce technology into a company. The study reveals the impact of technology mergers and acquisitions on the innovation capability of core developers in construction companies. Among core developers are those who have deep professional knowledge accumulation and strong ability to digest and innovate external knowledge. The social network analysis method is used to measure the relevant indicators of the core Research and Development (R&D) personnel cooperation network. Bridge Group Co Ltd with Chongqing Beixin Yuchang Expressway Construction Co Ltd are used as examples where the changes in the network structure before and after the merger were investigated using quantitative analysis. These changes were investigated from two perspectives: the individual center cooperation network and the overall cooperation network of core R&D personnel. The results show that the density and centrality indicators of the core developers’ cooperation network have a positive effect on their innovation capability after the merger whereas the structural hole indicators have a negative effect on their innovation. The study broadens the thinking of social networks in the field of technology Mergers and Acquisitions (M&A) and provides directions for enhancing the innovation capability of core developers, as well as serving as a theoretical guide and reference for M&A activities in the construction industry.