Dynamics of Chinese emerging multinationals in cross-border mergers and acquisitions

Nicholas Collett, Artie W. Ng, Jay Chatzkel, K. F. Lau, Douglas Macbeth

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose: China's emerging multinationals (CEMs) have gained attention for their increasing activities in mergers and acquisitions (M&As) within the global arena. Harnessing previous studies about the significance of their cultural baggage and an underlying strategic intent in reverse technology transfer through cross-border M&As, the purpose of this paper is to explore the dynamics of CEMs in their process of cross-border M&As through the perspectives of intellectual capital. Design/methodology/approach: Building on an interdisciplinary literature review, a theoretical framework is devised to exemplify such dynamics within a CEM during the course of reverse technology transfer and swift transformation into a global enterprise for technological innovation through M&As. A longitudinal case study is adopted to examine how two technology-based CEMs continue to modify and reconfigure their respective committed intellectual capital resources while undergoing cross-border M&A transactions. Findings: The study suggests the relevance of a conceptual framework and unveils a causal development of dynamic capabilities that is evidenced by resource reconfiguration and post-merger performance. It further reveals a reinforced dynamic capability development process that would enhance reverse technology transfer for domestic rather than overseas market development while pursuing equilibrium of knowledge. Originality/value: This is an original paper that explores the cultural dynamics of CEMs and what influences their intellectual capital development during their cross-border M&As. This paper articulates that CEMs need to create their own unique intellectual capital that contributes constructively to their international operations throughout their post-merger integrations. © Emerald Group Publishing Limited.
Original languageEnglish
Pages (from-to)416-438
Number of pages22
JournalJournal of Intellectual Capital
Volume13
Issue number3
DOIs
Publication statusPublished - Jul 2012

Keywords

  • Acquisitions and mergers
  • China
  • Chinese culture
  • Chinese multinationals
  • Dynamic capabilities
  • Intellectual capital
  • Knowledge transfer
  • Multinational companies
  • Reverse technology transfer

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