From Technological Integration to Sustainable Innovation: How Diversified Mergers and Acquisitions Portfolios Catalyze Breakthrough Technologies

Against the backdrop of intensifying global technological competition and sustainable development challenges, achieving breakthroughs in core technologies has become a significant challenge for Chinese enterprises. While existing research indicates that technological Mergers and Acquisitions (M&As) serve as a crucial pathway for acquiring external innovation resources, the previous literature often examines acquisition events in isolation, overlooking potential synergistic effects among multiple acquisitions implemented within specific periods. Drawing on knowledge recombination theory, this study examines the innovative effects of diversified technological M&A portfolios. We argue that under the dual pressures of digital transformation and sustainable development, enterprises can establish multidimensional knowledge foundations and trigger cross-domain recombination of knowledge elements through implementing different types of technological acquisitions, thereby catalyzing transformative breakthrough innovations that fundamentally reshape technological trajectories that contribute to sustainable competitive advantages. Based on acquisition and patent data from Chinese A-share listed companies from 2012 to 2022, our findings reveal that diversified technological M&A portfolios significantly promote breakthrough innovation through three mechanisms: knowledge distance optimization, cognitive schema reconstruction, and complementarity of innovation elements. Further analysis indicates that this effect is more pronounced in companies with Chief Science Officers (CSOs) and high-tech enterprise qualifications. This research not only enriches theoretical research on technological M&As and innovation management but also provides new practical insights for enterprises seeking to achieve sustainable breakthrough innovations through strategic acquisition deployment.