Catch-Up and Leapfrogging: Emerging Economy Multinational Enterprises on the Global Stage

Meyer, Klaus E.

doi:10.1080/13571516.2017.1374624

Cited by 25 publications

(21 citation statements)

References 63 publications

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“…One remarkable question we would like to ask is that: how can the manager of acquiring firms embarked on acquisitions that do not benefit them? Meyer (2018) suggests that we lack understanding of how M&A implement their strategies, hence, we expect to see value enhancement. At the very least, global economic uncertainty will push companies" decisions to M&A in the years to come.…”

Section: Resultsmentioning

confidence: 99%

“…Reynolds and Teerikangas (2016) indicate that firms use M&A for strategic expansion and to develop new skills and capabilities and the potential competitive strengths an acquirer can derive from M&A. Meyer (2018) also indicate that these acquired assets are strategic and they strengthen the capabilities of the acquirer, providing advanced technologies or international brand names that strengthen the firm"s competitive position and transform their capabilities. Operating capabilities of the two firms will lead to economies of scale.…”

Section: Methodsmentioning

confidence: 99%

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Mergers and Acquisitions and Multinational Companies: A Review and Research Agenda

Kyei-Mensah¹

2019

IJEF

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We review the theoretical and empirical studies concerned with mergers and acquisitions (M&A) to evaluate the knowledge in the area and to recommend new areas for future research. Unlike other reviews, we focus on research in finance, accounting, and management literature. While the area of M&A is well-researched in all three subject areas, to date it is unclear what factors actually drive M&A decisions and the specific impacts of M&A deals on shareholder wealth. The core material in the finance and accounting journals tend to provide a quantitative basis for accessing the success or failure of M&A deals. The management journals tend to explore qualitative aspects of mergers. While financial considerations rely heavily on behavioural considerations for their success, we aim to provide an integrated approach to our review.

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Section: Resultsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Mergers and Acquisitions and Multinational Companies: A Review and Research Agenda

Kyei-Mensah¹

2019

IJEF

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“…Stable SM is formed based on resources and routines [58]. However, catching-up changes the basis of competition for latecomers [59]. The original effective SM will not adapt to the new competitive environment when the gap between the latecomers and incumbents shrinks.…”

Section: Analysis Frameworkmentioning

confidence: 99%

An Exploratory Study of How Latecomers Transform Strategic Path in Catch-Up Cycle

Wang

2021

Sustainability

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In catch-up cycles, the industrial leadership of an incumbent is replaced by a latecomer. Latecomers from emerging economies compress time and skip amplitude by breaking the original strategic path and form a new appropriate strategic path to catch up with the incumbents. Previous studies have found that the original strategic path is difficult to break and difficult to transform. This paper proposes a firm-level framework and identifies the impetus and trigger factors for latecomers to transform the strategic path. The impetus is the mismatch between strategic mode and technological innovation capability. The trigger is the progressive industrial policy. Based on a Chinese rail transit equipment supplier’s (China Railway Rolling Stock Corporation; CRRC) catch-up process, this paper finds that the strategic path transformation is an evolutionary process from mismatch to rematch between strategic mode and technological innovation capability. With the implementation of industrial policy, the technological innovation capability will change. The original strategic mode does not match with changed technological innovation capability, which leads to performance pressure. With the adjustment of industrial policy, a new strategic mode adapted to new technological innovation capability emerges. This paper clarifies the source that determines successful catch-up practices for latecomers and contributes to latecomers’ sustainable growth in emerging economies.

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“…Lastly, Chinese service firms' FSAs based on their access to large domestic market is only applicable in other developing countries, in which customer demands focus more on cost advantages than cutting-edge services (Cuervo-Cazurra and Genc 2008; Cui and Jiang 2009). For example, Chinese internet service providers, such as Alibaba, Tencent and Baidu have successfully applied their business models in other developing countries (Meyer 2018). However, the marketing and distribution capabilities developed in China are less exploitable in developed countries with more sophisticated customer demands and stricter regulatory institutions (Held et al 2014;Verbeke and Kano 2016).…”

Section: Challenges Of Internationalization For Chinese Service Firmsmentioning

confidence: 99%

“…It is particularly true for Chinese service firms, given that Chinese service industries are dominated by state owned enterprises (SOEs) (Breslin 2012;OECD 2015). They use artificially cheap debt capital to finance internationalization which is in line with the "go global" policy and "the Road and Belt Initiative" of the Chinese government (Meyer 2018;Rugman et al , 2016. As such, Chinese service firms may start international expansion and increase the degree of multinatinality while possessing little or no conventional FSAs in technology and brand reputation.…”

Section: Introductionmentioning

confidence: 99%

Chinese Service Multinationals: The Degree of Internationalization and Performance

Wei

Nguyen

2020

Manag Int Rev

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We investigate the degree of internationalization of Chinese service multinational enterprises (MNEs) and their performance relative to global peers operating in the same industries, using the benchmarking method with the industry financial data. Our theoretical development is based upon Verbeke and Forootan (2012)’s framework, grounded in “new” internalization theory, arguing that an MNE’s financial performance is fundamentally determined by its firm-specific advantages (FSAs). Here FSAs include not only conventional strengths in R&D and brand names, but also the recombination capabilities, which is a higher-order FSA. We theorize that Chinese service MNEs develop FSAs, which are built upon home country-specific advantages (CSAs) and thus their FSAs are home country-bound in nature. They have not yet been able to develop advanced management capabilities through recombination with host CSAs. We empirically examine the largest 500 Chinese service firms. We find that only 23 Chinese service firms are true MNEs, whereas the majority of them are purely domestic firms. The financial performance of Chinese service MNEs is poor relative to global peers. They internationalize mainly through acquisitions of foreign firms, which help them increase their foreign sales, but they are not able to achieve superior performance in overseas operations. We discuss the strategic implications of our findings for managers, public policy makers, and academic research.

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Catch-Up and Leapfrogging: Emerging Economy Multinational Enterprises on the Global Stage

Cited by 25 publications

References 63 publications

Mergers and Acquisitions and Multinational Companies: A Review and Research Agenda

Mergers and Acquisitions and Multinational Companies: A Review and Research Agenda

An Exploratory Study of How Latecomers Transform Strategic Path in Catch-Up Cycle

Chinese Service Multinationals: The Degree of Internationalization and Performance

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