“…As Chinese firms have moved further up the value chain to more advanced goods, they have also increased their need to access the sophisticated technology of mature markets (Birkinshaw, Bresman, & Håkansson ; Anand & Delios, ; Caiazza, ; Caiazza, & Ferrara, ; Carbonara, & Caiazza, ). Thus, cross‐border M&A has become the dominant vehicle for Chinese outward investment and is preferred to joint ventures and the establishment of overseas subsidiaries (Hitt, Harrison, Ireland, Best, ; Vasconcellos, & Kish, ; Zahra, Ireland, Gutierrez, & Hitt, ).…”
Section: What Drives Foreign Acquisitions?mentioning
confidence: 99%
“…Through REN, State Grid has now entered the African and Brazilian markets. This deal emphasizes Chinese corporations’ increasing propensity to search overseas for high‐growth markets to expand their assets via acquisitions of legacy holding firms in Europe, which adds a veneer of familiarity to the deal (Caiazza & Ferrara, , b, c). Propositions 5: High performance in a multipolar world requires an ability to adjust a firm's market focus in response to shifting patterns of comparative advantage across geographies as different countries become relatively more or less attractive as markets for products or as sources of resources .…”
Section: How To Achieve High Performance?mentioning
The emergence of new economic centers is changing the competitive scenario. The diffusion of power across an increasingly broad range of countries has opened a window of opportunity for fi rms from China that want to compete globally. These fi rms understand their options in exploiting economic geography, and they frequently use cross-border mergers and acquisitions (M&As) to penetrate developed countries. The United States and Europe are becoming natural destinations for such investments because of their huge markets and leading-edge technologies. This article provides a "framing device" for fi rms' strategies in a multipolar world.
“…As Chinese firms have moved further up the value chain to more advanced goods, they have also increased their need to access the sophisticated technology of mature markets (Birkinshaw, Bresman, & Håkansson ; Anand & Delios, ; Caiazza, ; Caiazza, & Ferrara, ; Carbonara, & Caiazza, ). Thus, cross‐border M&A has become the dominant vehicle for Chinese outward investment and is preferred to joint ventures and the establishment of overseas subsidiaries (Hitt, Harrison, Ireland, Best, ; Vasconcellos, & Kish, ; Zahra, Ireland, Gutierrez, & Hitt, ).…”
Section: What Drives Foreign Acquisitions?mentioning
confidence: 99%
“…Through REN, State Grid has now entered the African and Brazilian markets. This deal emphasizes Chinese corporations’ increasing propensity to search overseas for high‐growth markets to expand their assets via acquisitions of legacy holding firms in Europe, which adds a veneer of familiarity to the deal (Caiazza & Ferrara, , b, c). Propositions 5: High performance in a multipolar world requires an ability to adjust a firm's market focus in response to shifting patterns of comparative advantage across geographies as different countries become relatively more or less attractive as markets for products or as sources of resources .…”
Section: How To Achieve High Performance?mentioning
The emergence of new economic centers is changing the competitive scenario. The diffusion of power across an increasingly broad range of countries has opened a window of opportunity for fi rms from China that want to compete globally. These fi rms understand their options in exploiting economic geography, and they frequently use cross-border mergers and acquisitions (M&As) to penetrate developed countries. The United States and Europe are becoming natural destinations for such investments because of their huge markets and leading-edge technologies. This article provides a "framing device" for fi rms' strategies in a multipolar world.
Purpose
– Italy is traditionally one of Egypt’s main trading partners, ranking first both as import and export partner. However, Italian firms face several cultural problems in Egypt. The purpose of this paper is to investigate the impact of cross-cultural differences faced by Italian firms’ operating in Egypt. The investigation of cross-cultural differences is facilitated by the examination of interaction between Italian and Egyptian culture using Hofstede and GLOBE’s cultural attributes and dimensions.
Design/methodology/approach
– The qualitative analysis has been conducted through face to face interviews of individuals working for Italian firms operating in Egypt. These interviews were structured to specifically identify the impact of cultural differences on the interaction between Italian and Egyptian firms.
Findings
– The results show that Italy is one of the most important commercial partners of Egypt. However, cultural diversity results in Italian small and medium enterprises facing risks when operating in Egypt. Cultural distance is a problem for Italian firms investing in Egypt. Thus, interaction between Italian and Egyptian firms requires a common understanding of cultural diversity. Italian firms must develop an understanding of Egyptian culture if they are to avoid cultural clash. Egyptian policy-makers must adopt policies that open national culture to international interactions.
Research limitations/implications
– The paper is based on a sub-set of the cultural attributes identified in Hofstede and GLOBE’s study. The results presented in this paper may be complimented through a future quantitative analysis, evaluating the relationship between religious values and other cultural dimensions.
Originality/value
– This paper provides an insight into the interaction between Italian and Egyptian culture. It contributes to the extant literature by filling a gap in the existing literature on cross-cultural diversity and interaction between Europe and Middle East.
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