BUILDING RESILIENT M&A STRATEGIES IN THE DIGITAL ERA: LESSONS FROM THE TMT SECTOR
Abstract
Research in corporate digital transformation of the TMT sector has typically emphasized independent decisions, usually overlooking the interactive effect between peer firms. This paper analyzes the combined impact of industry-wide and regional peer effects on M&A strategies within a digital context. Using theoretical analysis and empirical evidence, this paper will discuss how the characteristics of TMT moderate the influence of peer effects on digital transformation in mergers and acquisitions. The findings reveal that indeed industry and regional peer effects may affect the success of M&A strategies as well as the attributes such as diversity, education level, age, and tenure of top management team. Higher female share, younger average age, education level, and longer service tenures in TMTs intensify the positive effects of peer effects with digital transformation and post-acquisition integration. Change variables tests, Tobit models, period analyses, and IV methods all provide further support for these empirical findings. In addition, the study reveals nonlinear connections between digital transformation and innovative outcomes, moderated by R&D investments as well as peer effects. These insights point to the importance of industry cooperation, regional synergies, and TMT composition in constructing robust M&A strategies that offer actionable guidance on navigating the complexity of the digital age.
Keywords
Digital Transformation, Resilient M&A Strategies, TMT Sector, Peer Effects, Top Management, Innovation and Synergies.