Paper Sampl

8176 WordsApr 28, 201133 Pages
Acquisition of Strategic Assets through M&A: An Institutional Approach by Ping Deng, Ph.D. Associate Professor of Business Administration John E. Simon School of Business Maryville University of St. Louis 650 Maryville University Dr. St. Louis, MO 63141, USA Tel: (314) 529-9697 Fax: (314) 929-9975 E-mail: March 11, 2007 This manuscript is being submitted as a full and original paper to the Journal of World Business for review and possible publication in the journal. Your kind considerations would be greatly appreciated. Acquisition of Strategic Assets through M&A: An Institutional Approach Abstract As a latecomer, Chinese corporations (MNCs) are more likely to use foreign direct investment (FDI) and particularly merger and acquisition (M&A) as a means to acquire strategic assets overseas in order to address their competitive disadvantage. As there is lack of research on M&A strategies from Chinese firms, this paper intends to address this critical issue from an institutional perspective. Building on institutional theories, we propose a theoretical model of resource-driven motivations of Chinese M&A. To shed light on the explanatory power of this institutional framework, we draw on a multiple-case study of three leading Chinese firms – TCL, BOE and Lenovo. By arguing that cross-border M&A from Chinese MNCs represents a means to access and acquire strategic assets in the logic of Chinese unique institutional environment, this study is of importance not only to stimulate possible theoretical extensions but also to draw strategic implications to other emerging market firms. Key words: Strategic assets; cross-border M&A; institutional theory; Chinese MNCs 1. Introduction According to the asset-seeking perspective, firms engage in FDI to source strategic assets such as advanced technologies,

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