Abstract: Cross-border M&A integration is the key process for emerging market enterprises to rapidly improve their innovative capacity. Using Cross-border M&A data of China′s listed firms from 2011 to 2015, the paper empirically studies the impact of M&A integration on firms′ innovation performance. Further, integrating resource-based theory and institutional theory, it examines the moderating effects of cultural distance and resource complementarity. Research finds that structural integration is negatively correlated with innovation performance, and target autonomy is positively correlated with innovation performance; further research shows when resource complementarity is higher, the negative impact of structural integration on innovation performance will be stronger, while the positive impact of target autonomy will be greater; in the case of high cultural distance, the negative effect of structural integration on innovation performance is stronger, while the positive effect of target autonomy is greater. This research reveals the mechanism of cross-border M&A integration on innovation performance, and has a certain reference value for cross-border M&A practice of Chinese firms.

Key words: cross-border M&A integration, innovation performance, resource complementarity, cultural distance