Foreign acquisitions by Chinese firms: A strategic intent perspective

Rui, Huaichuan; Yip, George S.

doi:10.1016/j.jwb.2007.11.006

Cited by 643 publications

(601 citation statements)

References 22 publications

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“…In this period, FDI from emerging countries to developed countries were more focused on obtaining new sources of competitive advantage by acquiring strategic assets (Andreff, 2003;Gammeltoft, 2008: Deng, 2007Rui and Yip, 2008). Thus EMNEs in the third wave of internationalization, particularly those from BRIC countries are more motivated by strategic assets that they need to close the capability gap that they have compared to DMNEs (Cuervo-Cazurra and Genc, 2008;Gammeltoft, 2008;Madhok and Keyhani, 2012;Guillen and Garcia-Canal, 2009;Hennart, 2012;Deng, 2012).…”

Section: A New Paradigm Of Internationalization?mentioning

confidence: 99%

Guest Editors’ Introduction: People Management and Emerging Market Multinationals

Wilkinson

Wood

Demirbağ

2014

Human Resource Management

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There is a very extensive body of literature on how multinationals manage their people in different national contexts. However, the bulk of this literature focuses on the case of multinationals from the advanced industrial economies, and to a considerable extent, the United States. Very much less has been written on multinationals with their country of origin being an emerging market, and what there has focuses on a very limited number of preferred cases. The growing importance of emerging economies has lead to an upsurge of strategy research on the topic (Wright, Filatotchev, Hoskisson and Peng, 2005); however, research on HRM has not paid enough attention to Emerging Market Multinational Enterprises (EMNEs). Many EMNEs tend to be smaller in size with considerably lesser resources and international experience than their counterparts from developed markets limiting their ability to transfer management practice across their subsidiaries (Thite, Wilkinson, & Shah, 2012), although there are important exceptions to this rule. This introductory article seeks to contribute to the emerging body of literature in this area, through seeking to encourage fresh insights particularly on the varieties of people management encountered in different national contexts.Correspondence to: Geoffrey Wood, Professor of International Business, Warwick Business School, University of Warwick, Coventry, CV4 7AL UK, Phone: +44 (0)24 765 24502, Email: Geoffrey.Wood@wbs.ac.uk.Emerging market MNCs have become increasingly prominent -and at times, controversial -within both the developing and developed world. This has encompassed such a diverse range of activities such as takeovers of failing Western firms, the buying up of land and mineral resources in Africa, and the establishment of (often) low cost manufacturing companies in target markets (or in countries with which such markets enjoy free trade agreements) in order to circumnavigate remaining tariff barriers. Whilst the diversity of such activity makes it difficult to draw out general trends, a few issues are of particular importance. The first is the political dimension of MNC activity, an issue relatively neglected in the business and management literature. Where MNCs originate in less democratic countries, relations with parent country governments and senior

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Section: A New Paradigm Of Internationalization?mentioning

confidence: 99%

Guest Editors’ Introduction: People Management and Emerging Market Multinationals

Wilkinson

Wood

Demirbağ

2014

Human Resource Management

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“…Dunning (1993) suggests three main motives for foreign investments: foreign market seeking, efficiency seeking (i.e., cost reduction), and resource seeking. Since the rapid growth of cross-border M&As from EM companies, scholars have investigated their motivations for internationalization and agree that this traditional analysis cannot totally explain the rise in crossborder M&As from emerging markets (Athreye & Kapur, 2009;Buckley, et al, 2007;Dunning & Lundan, 2008;Gubbi, et al, 2010;Li, 2007;Mathews, 2006;Rui & Yip, 2008;Sun, et al, 2012).…”

Section: Motives For Cross-border Mandasmentioning

confidence: 99%

“…The resource-based view literature suggests that capabilities and resources are the key determinants of a firm's competitive advantage (Barney, 1991). According to this resource-based theory, the key motivation for foreign acquisitions is to gain access to strategic assets such as natural resources, product differentiation, patent-protected technologies, superior managerial and marketing skills, as well as achieving economies of scale (Accenture, 2006;Athreye & Kapur, 2009;Chen, 2008;Cui & Jiang, 2010;Deng, 2007;Deng, 2009;Kumar, 2009;Rui & Yip, 2008;Wang & Boateng, 2007). Lacking such strategic resources, EM firms use cross-border M&As as the most effective way to improve their competitive advantage and performance (Gubbi, et al, 2010).…”

Section: Motives For Cross-border Mandasmentioning

confidence: 99%

“…Chinese MNEs are more interested in gaining natural resources and superior managerial and marketing skills in order to improve their competitive advantage in manufactured products (Athreye & Kapur, 2009;Chen, 2008;Cui & Jiang, 2010;Deng, 2007;Deng, 2009;Kumar, 2009;Rui & Yip, 2008;Wang, et al, 2012;Wang & Boateng, 2007), whereas cross-border acquisitions from Indian companies primarily involve a technologyintensive industry (e.g. software and pharmaceutical) in which India has a high competitive advantage (Arora, Arunachalam, Asundi, & Fernandes, 2001;Ethiraj, Kale, Krishnan, & Singh, 2005;Miozzo & Grimshaw, 2008;Sun, et al, 2012).…”

Section: Competitive Advantage and Performancementioning

confidence: 99%

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The motives and performance of cross-border acquirers from emerging economies: Comparison between Chinese and Indian firms

Nicholson

Salaber

2013

International Business Review

165

155

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During the recent decade, the world has witnessed the rapid growth of MNEs from emerging economies. Their increasing participation in cross-border mergers and acquisitions has raised great attention in the extant literature. This study evaluates the value creation from these cross-border transactions from two representative emerging countries, namely China and India, and determines factors that result in the different performance of these international acquisition activities. Crossborder acquisitions conducted by these countries' companies indeed lead to significant shareholder wealth creation. Furthermore, Indian shareholders are more likely to benefit from deals in small cultural distance countries, while Chinese investors gain from the cross-border expansion of manufacturing companies. Location also affects the performance of cross-border acquisitions, with acquisitions into developed countries generating higher returns to shareholders. Our sample consists of 203 Indian and 63 Chinese cross-border deals over the period 2000-2010 and our results hold after controlling for various deal-level and firm-level characteristics.

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“…By now, TNCs in developing countries have become powerful enough to be able to compete with their western rivals, not only in domestic markets (Huber, Ennis, 2014), but also in other emerging markets; even markets of the developed countries (Tang, 2010). In recent years, through the acquisition of North American and Western European firms (Deng, 2007;Rui, Yip, 2008), several large Chinese and Indian companies have managed to gain new markets in the developed world. Moreover, by reversing the usual direction of foreign direct investments (i.e.…”

Section: Introductionmentioning

confidence: 99%

Cities as command and control centres of the world economy: An empirical analysis, 2006–2015

Csomós

2017

Bulletin of Geography. Socio-Economic Series

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Abstract. As a result of their rapid economic growth, several powerful corporate giants have emerged in developing countries, especially in China, operating not only in the traditional manufacturing sector, but also in high-tech industries and finance. Major cities in developing countries have gradually become important command and control centres of the global economy, and have also become powerful enough to be in the same tier as major cities of developed countries around the world. In this paper, I examine the position of cities as command and control centres on the basis of the power of their headquartered corporations. The result shows that until 2012, New York, London, Tokyo, and Paris; i.e. the global cities, were the leading command and control centres. However, the gap between these global cities and Beijing gradually closed, and by 2015, the Chinese capital outranked all the global cities. The outstanding performance of Beijing-based corporations that operate in financial, energy, and construction services sectors is the driving force behind Beijing's increasing global power. In addition, the leading position of the global cities as command and control centres has been threatened by the San Francisco-San Jose metropolitan region, a newly emerging economic hub in the United States.

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Foreign acquisitions by Chinese firms: A strategic intent perspective

Cited by 643 publications

References 22 publications

Guest Editors’ Introduction: People Management and Emerging Market Multinationals

Guest Editors’ Introduction: People Management and Emerging Market Multinationals

The motives and performance of cross-border acquirers from emerging economies: Comparison between Chinese and Indian firms

Cities as command and control centres of the world economy: An empirical analysis, 2006–2015

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