Research on the impact mechanism of cross-border mergers and acquisitions on the transformation and upgrading of manufacturing industry: Taking enterprises in the Pearl River Delta region as an example

The convergence of global value chain restructuring and China's manufacturing upgrades has driven Pearl River Delta (PRD) manufacturing enterprises to view cross-border mergers and acquisitions (M&A) as a key strategy for overcoming development bottlenecks and achieving a leap in performance. This article focuses on the practices of enterprises in the region and systematically analyzes the mechanisms by which cross-border M&A drives manufacturing upgrades. The study finds four core driving mechanisms: technological leapfrogging synergy, brand and channel integration, management paradigm upgrades, and value chain restructuring. On the technological level, reverse spillovers, R&D integration, and ecosystem development significantly enhance enterprises' core technological capabilities; brand and channel integration facilitates rapid access to high-end international markets and increases brand premiums; management upgrades strengthen enterprises' internal driving forces through optimized governance and operational efficiency; and value chain restructuring supports enterprises' migration from low- and mid-end processing to high-value-added segments such as R&D, design, and brand marketing. Empirical evidence shows that the effectiveness of M&A integration depends heavily on strategic fit, cultural integration, resource synergy, and dynamic adaptability. At the same time, geopolitical factors, cultural conflicts, and integration risks pose a triple obstacle. Pearl River Delta enterprises urgently need to strengthen strategic foresight, deepen due diligence, cultivate an inclusive culture, enhance integration capabilities, and leverage regional policies and cluster ecosystems. This study provides theoretical support for understanding the inherent logic of cross-border mergers and acquisitions in promoting manufacturing upgrades, and contributes practical guidance to regional and corporate decision-making.