scholarly journals Competitive Advantages of Cross-Border M&As to Non-Location-Bound Chinese ICT Firms

2020 ◽  
Author(s):  
Yan Chen ◽  
Fei Li ◽  
Jaime Ortiz ◽  
Wenbo Guo
Keyword(s):  
Competitive Advantage ◽  
Home Country ◽  
Emerging Market ◽  
Information And Communications Technology ◽  
Crowding Out ◽  
Communications Technology ◽  
Competitive Advantages ◽  
Technology Firms ◽  
Cross Border ◽  
D Investment

Cross-border mergers and acquisitions (M&As) undertaken by emerging market firms have been associated with competitive advantage. However, little research has focused on the transferability of this enhanced competitive advantage. Even less is known about the role played by state-owned enterprises. This paper investigates whether Chinese information and communications technology firms that undertake cross-border M&As can improve their non-location bound competitive advantage. We used cross-border data between 2010 and 2017 and propensity-score matching and differences-in-differences approaches. We found that cross-border M&As significantly improve the home-country-bound competitive advantage. However, the effect on non-location bound competitive advantage is not significant. From the perspective of impact mechanism, this is due to a crowding-out effect of cross-border M&As on research and development (R&D) investment which inhibits non-location bound advantages. It also results from state-owned enterprises which are generally considered to have institutional advantages, not effectively using cross-border M&As to enhance their competitive advantages. This research distinguishes and quantifies home-country-bound competitive advantage and non-location bound competitive advantage and establishes a framework for how cross-border M&As enhance enterprise competitive advantage. It provides an explanation for the extant research on whether state-owned enterprises can enhance their competitive advantage through cross-border M&As, and what kind of advantage they attain.

SMEs and E-Business

2013 ◽  
pp. 97-117
Author(s):  
Mário Pedro Leite de Almeida Ferreira
Keyword(s):  
Economic Development ◽  
Competitive Advantage ◽  
Resource Availability ◽  
Implementation Strategies ◽  
Theoretical Models ◽  
Critical Issue ◽  
Comprehensive Analysis ◽  
Information And Communications Technology ◽  
External Support ◽  
Communications Technology

The adoption of E-Business by SMEs is a critical issue for economic development. More than 90% of world companies are SMEs and E-Business is widely recognized as a critical source of competitive advantage. Thus, it is important to understand why SMEs are lagging behind large firms in terms of E-Business adoption and assimilation. This chapter will attempt to search for explanations through a comprehensive analysis of main topics in terms of E-Business implementation, strategies and policy. It is believed that the inadequacy of existing E-Business adoption incentives and theoretical models may be due to SME specificity, as these companies are conditioned among other by resource availability and high CEOs/owners’ dependency. Empirical evidence shows that SMEs have erratic behaviors in terms of Information and Communications Technology (ICT) investment and need external support to integrate E-Business in the overall strategy of the firm.

Taiwan's Economy: An Economic Recession in the Making

2016 ◽  
Vol 08 (01) ◽  
pp. 128-143
Author(s):  
Chien-Hsun CHEN
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Competitive Advantage ◽  
Industrial Structure ◽  
Economic Recession ◽  
Information And Communications Technology ◽  
Communications Technology ◽  
Technology Sector

Taiwan experienced a sharp deceleration in economic growth in the second quarter of 2015. If Taiwan's exports continue to deteriorate, Taiwan would have to struggle to maintain a one per cent growth rate. Taiwan's economic conundrums mainly lie with its deteriorating industrial structure. Without deepening industrial structural upgrades and reforms in the information and communications technology sector in particular, Taiwan will lose its international competitive advantage.

Driving the internet and e-business technologies to generate a competitive advantage in emerging markets

2019 ◽  
Vol 33 (2) ◽  
pp. 389-423
Author(s):  
Gamal Mohamed Shehata ◽  
Mohammed A. Montash
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Quantitative Research ◽  
Emerging Market ◽  
Empirical Studies ◽  
The Internet ◽  
Competitive Advantages ◽  
Mena Region ◽  
Content Type ◽  
Major Market

Purpose The purpose of this paper is to develop and empirically examine a comprehensive model that attempts to identify the factors that explain competitive advantage of implementing electronic business (e-business) in an emerging market. It seeks to fulfill an inevitable lack of conducting rigorous and intensive empirical studies on the Middle East and North Africa (MENA) region in which the internet use and e-business applications are on the rise. Design/methodology/approach This research is descriptive in nature where a quantitative research methodology is deployed. Data are collected using both interviews and e-survey for a sample of 302 Egyptian companies serving in diverse industries. A multivariate partial least squares technique is employed to analyze the collected data. Findings This study explores various e-business modes and applications widely employed in the MENA region. It also addresses a set of e-business-driven competitive advantages that are mainly generated from supportive ICT environment, major market forces and strategic opportunities, and at last, from electronically driven customers’ relationship initiatives. A number of e-business barriers are claimed to moderate the relationship between those forces and the resulting competitive advantages. Research limitations/implications Although this research main framework incorporates important variables based on theoretical and empirical foundations, integrating other factors may extend understanding of how these factors, independently and/or interactively, explain the adoption of e-business and its merit to create distinctive competitive advantage. Practical implications This work helps managers and e-business experts alike to comprehend the ways through which firms target the applications of e-business technologies to realize a competitive edge in MENA region. It also helps practitioners and professionals comprehend the interrelationship between the type of forces drive e-business based competitive position and key barriers that deteriorate such a connection in emerging markets. Originality/value A model that enables scholars to better understanding the e-business phenomenon in MENA market is developed and validated. This model rests on e-business experts’ perspectives, reflections and it is evidently substantiated by past works in the areas.

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.

Information and Communication Technology for SMEs' Competitiveness

2020 ◽  
pp. 1006-1022
Author(s):  
Neeta Baporikar
Keyword(s):  
Gross Domestic Product ◽  
Competitive Advantage ◽  
Information And Communications Technology ◽  
Communications Technology ◽  
Employment Opportunities ◽  
Competitive Firm ◽  
The People ◽  
Information And Communication ◽  
Role Of Information

Competitiveness of a firm is its capacity to achieve its targets. These targets are likely to be expressed in a variety of terms depending on the context (Barney 2002). Within a macroeconomic perspective, a competitive firm develops and sustains a level of performance that contributes to the Gross Domestic Product (GDP), employment opportunities, and the wealth of the people. From an entrepreneurial perspective, a competitive firm needs to survive in the market and to achieve market share and profitability. This paper deliberates regarding the theory of competitive advantage and discusses the role of Information and Communications Technology (ICT) for augmenting SMEs' competitiveness.

Organisational capabilities and internationalisation of the small and medium-sized information and communications technology firms

2010 ◽  
Vol 8 (2) ◽  
pp. 135-155 ◽  
Author(s):  
Olli Kuivalainen ◽  
Kaisu Puumalainen ◽  
Sanna Sintonen ◽  
Kalevi Kyläheiko
Keyword(s):  
Information And Communications Technology ◽  
Communications Technology ◽  
Technology Firms ◽  
Organisational Capabilities

The competitive advantages of emerging market multinationals: a re-assessment

2015 ◽  
Vol 11 (3/4) ◽  
pp. 216-235 ◽  
Author(s):  
Peter J. Williamson
Keyword(s):  
Competitive Advantage ◽  
Value Chain ◽  
Emerging Market ◽  
Chain Structure ◽  
Global Market ◽  
Global Value Chain ◽  
Competitive Advantages ◽  
Content Type ◽  
Emerging Market Multinationals ◽  
Bric Countries

Purpose – The purpose of this paper is to re-assess both the nature and sources of the competitive advantages which multinationals expanding from home bases in emerging economies (EMNEs) may enjoy in the global market. Design/methodology/approach – The paper analyses the results of 12 concurrent studies undertaken by a group of experts who were asked to examine how strategies for innovation, international value chain configuration and foreign mergers and acquisitions contributed to the competitive advantages of multinationals emerging from Brazil, Russia, India and China (the BRICs), respectively. Findings – EMNEs do have competitive advantages that can underpin their expansion abroad, but these are mainly “non-traditional” advantages that have been built by finding innovative ways to leverage advantages of their home countries. EMNE’s internationalisation is as much about accessing new resources and knowledge to enable them to extend their competitive advantage, as it is a route to exploiting existing advantages over a larger set of markets. As a result, the global value chain structure of EMNEs tends to be fundamentally different from that chosen by incumbent multinationals. Research limitations/implications – The study is limited to EMNEs from the BRIC countries, but implications for EMNEs emerging from other countries are discussed. Originality/value – We bring to bear extensive data and a systematic approach to understanding the new breed of multinationals emerging from the BRIC countries; their sources of competitive advantage; and how they are using innovation, foreign investment and overseas acquisitions to transform global competition.

SMEs and E-Business

2011 ◽  
pp. 1-22
Author(s):  
Mário Pedro Leite de Almeida Ferreira
Keyword(s):  
Economic Development ◽  
Competitive Advantage ◽  
Resource Availability ◽  
Implementation Strategies ◽  
Theoretical Models ◽  
Critical Issue ◽  
Comprehensive Analysis ◽  
Information And Communications Technology ◽  
External Support ◽  
Communications Technology

The adoption of E-Business by SMEs is a critical issue for economic development. More than 90% of world companies are SMEs and E-Business is widely recognized as a critical source of competitive advantage. Thus, it is important to understand why SMEs are lagging behind large firms in terms of E-Business adoption and assimilation. This chapter will attempt to search for explanations through a comprehensive analysis of main topics in terms of E-Business implementation, strategies and policy. It is believed that the inadequacy of existing E-Business adoption incentives and theoretical models may be due to SME specificity, as these companies are conditioned among other by resource availability and high CEOs/owners’ dependency. Empirical evidence shows that SMEs have erratic behaviors in terms of Information and Communications Technology (ICT) investment and need external support to integrate E-Business in the overall strategy of the firm.

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