The impact of vertical integration of incumbents on the market value:The mediating role of innovation
The disruptive technological innovation has intensified"cross-border competition"among enterprises,making vertical integration an effective means for incumbent firms to reverse unfavorable positions and sustain competitive advantages.Leveraging research data from the traditional automobile manufacturing industry,this paper employs vertical integration theory to scrutinize the impact mechanisms of incumbent firms'vertical integration strategies—specifically,upstream acquisitions and downstream alliances—in response to disruptive technological entrants in the upstream.The study delves into the influence of these strategies on market valuation and unveils the underlying mechanisms through which innovation operates within this context.The results show that in the presence of disruptive technology entrants in the upstream segment,incumbent enterprises'upstream mergers and acquisitions(M&A)exert a positive influence on market value,while downstream alliances have a negative impact.And in scenarios involving disruptive technology entrants in the upstream,upstream M&A activities by incumbent enterprises act as a suppressant for innovation.Conversely,downstream alliances by incumbents serve as catalysts,fostering innovation.Given the divergence in the direction of vertical integration,innovative behavior exerts distinctly varied influences on market value.To be specific,innovative activities function as a masking mechanism between incumbent firms'upstream acquisitions and market valuation,while simultaneously acting as an intermediary variable between incumbent firms'downstream alliances and market valuation.
NETL
NSTL
万方数据
