scholarly journals How Do Cross-Border Mergers and Acquisitions Improve Innovation Quality in Emerging Market Multinational Enterprises? An Interaction Perspective Based on Network Balance and Digital Gaps

2019 ◽  
Vol 53 (3/2019) ◽  
pp. 203-220
Author(s):  
FEI LI ◽  
YAN CHEN ◽  
LIYEZI ZHANG ◽  
LAVINIA DUDAS
Keyword(s):  
Mergers And Acquisitions ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Cross Border ◽  
Innovation Quality

Post-acquisition control strategy and cross-border acquisition performance of Chinese MNEs: a fsQCA approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qi Yue ◽  
Ping Deng ◽  
Yanyan Cao ◽  
Xing Hua
Keyword(s):  
Fuzzy Set ◽  
Control Strategy ◽  
Multinational Enterprises ◽  
Cultural Distance ◽  
Emerging Market ◽  
Complex Nature ◽  
Acquisition Performance ◽  
Content Type ◽  
Cross Border ◽  
Chinese Mnes

PurposePost-acquisition control is a crucial factor affecting acquisition performance. We investigate how post-acquisition control strategy affects cross-border acquisition performance of Chinese multinational enterprises (MNEs) through a configurational perspective.Design/methodology/approachBased on 70 cross-border acquisition cases by Chinese MNEs, we adopt fuzzy-set qualitative comparative analysis (fsQCA) to study the combined effects of strategic control, operational control, institutional distance, cultural distance, relative capacity and business relatedness on the cross-border acquisition performance.FindingsOn the basis of fuzzy set analysis of multiple interdependent factors, we identify six configurations that are conductive to achieving high cross-border acquisition performance and two configurations that relate to the absence of high performance, thus shedding light on the casually complex nature of performance drivers of acquisitions.Originality/valueThis study provides a holistic, configurational approach to investigating cross-border acquisition performance by emerging market firms. Our results provide some compelling evidence that accounts for the causal complexity of post-acquisition control strategies and acquisition outcomes in the context of emerging economies.

Cultural and organizational integration in cross-border M&A deals

2017 ◽  
Vol 30 (7) ◽  
pp. 1109-1135 ◽  
Author(s):  
Andrei Panibratov
Keyword(s):  
Case Studies ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Strong Support ◽  
Annual Reports ◽  
Integration Process ◽  
Key Factors ◽  
Content Type ◽  
Cross Border ◽  
Organizational Integration

Purpose The purpose of this paper is to identify key factors that influence the integration process in cross-border mergers and acquisitions (M&A) deals of emerging multinational enterprises (EMNEs). The research questions are: how national and organizational culture coupled with other organizational characteristics influence M&A deals of EMNEs? Which factors influence the process of cultural and organizational integration in cross-border M&A deals, initiated by EMNEs? What is the effect and consequences that different integration factors have on cross-border M&A deals by EMNEs? Design/methodology/approach The paper is based on a multiple case study research, considering cross-border deals of Chinese and Russian firms separately. Each block consists of two cases, describing M&A integration of companies operating in two sectors: high technology and finance. The authors obtained the data for case studies from companies’ official websites, annual reports, press releases, other official documents where companies were mentioned, business-media sources (newspapers and magazines), published interviews, documented speeches, letters, laws, as well as through blogs and social networks. The authors have also used the published information from articles, books, databases, and previously conducted case studies. Findings The authors have identified the factors influencing deals’ results of Chinese and Russian MNEs, with explanation based on case studies’ analysis. The full list of factors is presented in Table IV in the manuscript. The authors have also identified the set of elements that were derived from the case studies’ analysis only, without having any strong support in the literature, such as changes at a senior management level, educational and business exchanges, CSR policy, and the government involvement. Originality/value The authors have identified the key factors that influence integration of emerging market firms in cross-border M&A deal. The list of factors was adjusted and actualized in accordance with the results of four cases of cross-border M&A deals of Chinese or Russian companies. As a result, the authors founded the combination of characteristics of cultural and organizational integration process of firms from China and Russia.

Lupin’s Foray into Japan

2012 ◽  
pp. 1-19
Author(s):  
Joshy Jacob ◽  
Sobhesh Kumar Agarwalla ◽  
Prem Chander
Keyword(s):  
Mergers And Acquisitions ◽  
Emerging Market ◽  
Pharmaceutical Firm ◽  
Cross Border ◽  
Trade Offs ◽  
Dynamic Decisions ◽  
Cost Competitiveness ◽  
Strong Motivation

The case described the issues faced by a mid-sized Indian generic pharmaceutical firm, in its attempt to acquire a small unlisted Japanese generics manufacturer. It showcases the strong motivation of a successful emerging market pharmaceutical firm to expand into the developed market, buoyed by its cost competitiveness. The case presents an opportunity to discuss the trade-offs involved with most of the dynamic decisions in a cross-border acquisition, such as estimation of synergies and value, bidding, and financing the acquisition. The case may be used in programmes on valuation, and mergers and acquisitions.

Ownership participation of cross-border mergers and acquisitions by emerging market firms

2015 ◽  
Vol 53 (1) ◽  
pp. 221-246 ◽  
Author(s):  
Monica Yang
Keyword(s):  
Mergers And Acquisitions ◽  
Cultural Distance ◽  
Emerging Market ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Firm Level ◽  
Content Type ◽  
Cross Border ◽  
Emerging Market Firms ◽  
The Relationship

Purpose – The purpose of this paper is to adopt a multi-level approach to investigate what factors shape the content of emerging market firms’ foreign market entry decisions, particularly the ownership participation in cross-border mergers and acquisitions (M&As). In addition, the author would like to know if companies from emerging markets that possess higher (or lower) ownership in cross-border M&As receive higher valuation in the market. Design/methodology/approach – Using panel data of cross-border M&As by emerging market firms from 2000 to 2012, the author tests the hypothesized effects of the independent variables on the level of ownership participation; and uses a standard event study methodology to assess the market reaction of a particular cross-border M&A deal. Findings – The author finds that a country-level factor (institutional distance), an industry-level factor (industry unrelatedness) and a firm-level factor (board concentration) have significant impact on ownership participation in cross-border M&As. The author also finds that investors do give high valuation to those emerging market firms that chose high ownership participation in cross-border M&As. However, the author did not finds the support for the relationship between ownership participation and cultural distance. Neither did the author finds the support for the relationship between ownership participation and board independence. Originality/value – This study enhances the understanding of conditions under which the level of ownership participation in cross-border M&As would increase (decrease) and how the market reacts to high (low) ownership participation of cross-border M&As by emerging market firms.

Drivers of emerging market cross border mergers and acquisitions: evidence from the Indian IT industry

2017 ◽  
Vol 9 (4) ◽  
pp. 360-374 ◽  
Author(s):  
Sumati Varma ◽  
Rabi Narayan Kar ◽  
Amit Soni ◽  
Gabriele Suder
Keyword(s):  
Mergers And Acquisitions ◽  
Emerging Market ◽  
It Industry ◽  
Cross Border

How does liability of origin influence cross-border acquisition completion? Evidence from Chinese firms

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tingting Jiang ◽  
Buyun Yang ◽  
Bo Yang ◽  
Bo Wu ◽  
Guoguang Wan
Keyword(s):  
Multinational Enterprises ◽  
Home Country ◽  
Emerging Market ◽  
Organizational Legitimacy ◽  
Binary Logistic Regression Model ◽  
Firm Level ◽  
Content Type ◽  
Low Level ◽  
Cross Border ◽  
Chinese Mnes

Purpose The environment of international business (IB) and the capabilities of emerging market multinational enterprises (EMNEs) as well as their home countries have changed significantly, leading to some new features of liability of origin (LOR). This paper aims to extend the LOR literature by particularly focusing on the LOR of Chinese multinational enterprises (MNEs) and by taking into account the heterogeneity among industries and across individual MNEs. Design/methodology/approach Based on the stereotype content model and organizational legitimacy perspective, this study explores how LOR influences Chinese MNEs’ cross-border acquisition completions. Several hypotheses were tested by using a binary logistic regression model with panel data techniques based on data of 780 Chinese MNEs’ acquisition deals between 2008 and 2018. Findings The results of this study show that when the competence dimension of China’s LOR is perceived as high in the host country, Chinese MNEs are less likely to complete cross-border acquisitions. Moreover, deals are less likely to be completed when the warmth dimension of China’s LOR is perceived to be low. Global experience and the foreign-listed status of individual Chinese MNEs can alter the relationship between the LOR and deal completions. Originality/value This study advances and enriches the LOR research. It shows that a high level of competence in the home country has led to LOR for Chinese MNEs rather than the low level of competence proposed by existing LOR studies; and the LOR for Chinese MNEs is also determined by the perceived low level of warmth in the home country resulting from the geopolitical conflicts between two countries. In addition, the LOR suffered by EMNEs could vary based on certain industry- and firm-level characteristics. The findings of this study provide important practical implications for emerging economy governments and for firms intending to go abroad.

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