How do high-technology firms create value in international M&amp;A? Integration, autonomy and cross-border contingencies

Hong, Zhu; Xia, Jun; Makino, Shige

doi:10.1016/j.jwb.2015.01.001

Cited by 60 publications

(38 citation statements)

References 102 publications

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“…We further ran sensitivity tests to check the robustness of our results particularly regarding effect of industrial differences (Zhu, Xia, & Makino, in press). First, to test how different industries of Chinese CBMAs could change the results, we took Mining , Hi‐Tech, and Service CBMA deals out of the sample and run additional statistical analysis.…”

Section: Resultsmentioning

confidence: 99%

Cross-Border M&As by Chinese Companies in Advanced Countries: Antecedents and Implications

Yang

Deng

2015

Thunderbird International Business Review

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Theoretically grounded in the ownership, location, and internalization (OLI) paradigm and institutional theory, this article investigates major macro-level factors that determine cross-border mergers and acquisitions (CBMAs) by Chinese fi rms in developed markets. Using panel data of Chinese CBMA deals in developed markets from 1996 to 2012, we found that market size, natural resources, and strategic assets of host advanced economies positively affected the number of Chinese CBMAs in the developed markets. With regard to institutional variables, the overall economic freedom of host countries positively affected Chinese CBMAs, whereas the host government effectiveness negatively infl uenced the number of Chinese CBMAs. Furthermore, the above hypothesized effects were significantly strengthened by the home country's government involvement mainly through ownership. Finally, we found that signifi cant factors to explain Chinese overall outward foreign direct investment (OFDI) are not necessarily applicable to explain Chinese CBMAs.

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Section: Resultsmentioning

confidence: 99%

Cross-Border M&As by Chinese Companies in Advanced Countries: Antecedents and Implications

Yang

Deng

2015

Thunderbird International Business Review

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“…Fifth, we control for the Chinese acquirers’ pre‐acquisition performance measured by the acquirer’s Tobin’s q in the year prior to the acquisition announcement (Huang et al, ). Sixth, we control for the Chinese acquirers’ debt to equity in the year prior to the acquisition announcement (Hayward and Hambrick, ; Huang et al, ; Zhu and Qian, ; Zhu et al, ). The acquirer’s debt to equity indicates the slack resources of Chinese acquirers to invest in the post‐acquisition integration processes.…”

Section: Methodsmentioning

confidence: 99%

“…In terms of firms’ CBMA international strategy, it is witnessed that the trend of CBMAs has been changing in the New Normal global business landscape, particularly with respect to developing economies. Firms from developing economies have been increasingly acquiring foreign targets with strategic resources in order to establish solid competitive bases and to create new value in the global markets of the New Normal (Hitt et al, ; Zhu et al, ; Zhu and Zhu, ). For example, Zero2IPO, a pioneer in China’s investment industry, reports that Chinese firms’ CBMAs increased about 100 times from $750 million in 2001 to $73.3 billion in 2017.…”

Section: Literature Reviewmentioning

confidence: 99%

The Roles of Chinese CEOs in Managing Individualistic Cultures in Cross‐border Mergers and Acquisitions

Hong

Zhu

Ding³

2020

J Management Studies

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The individualism‐collectivism culture represents an important and well‐researched distinction across cultures. Yet research is less clear about how the different levels of individualistic cultures in host countries affect the success of an increasingly important firm strategy – cross‐border mergers and acquisitions (CBMAs). This study addresses this key research question in the context of Chinese firms’ CBMAs, as Chinese firms are increasingly acquiring targets outside of China in the New Normal global business landscape. This study further theorizes and tests how the Chinese acquirer CEOs’ characteristics moderate the wealth creation relationship. In an analysis of 404 Chinese firms’ CBMAs, we found that an individualistic culture in the host country is negatively associated with Chinese acquirers’ CBMA wealth creation. We also demonstrate that Chinese CEOs’ exposure to foreign culture and female gender weaken that negative relationship, while CEO duality strengthens this negative relationship. Our research thus suggests that culture in host countries can negatively affect acquirers’ CBMA performance, but CEOs may be able to manage the effects of the culture to increase their CBMA performance.

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“…While some factors may enhance the influence of CD, others may act as closing distance mechanisms (Shenkar, 2001). Linguistic differences (Joshi and Lahiri, 2015;Zhu et al, 2015), economic freedom distance (Arslan et al, 2015) and management practices (Gunkel et al, 2015) are among the most recently explored moderators/mediators. This seems to be a particularly interesting issue in identified transversal/common sub-streams (i.e.…”

Section: Reflections and Avenues For Future Researchmentioning

confidence: 99%

International Business and National Culture: A Literature Review and Research Agenda

López-Duarte

Vidal-Suárez

González-Díaz

2015

Int J Management Reviews

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This literature review analyzes leading international business and management journals from 2000 to 2012 in order to explore the role of national culture in international business research. Through the analysis of the 265 selected articles, the study thematically maps the field and identifies research challenges and opportunities. It reflects on avenues for future research related to both thematic and methodological issues, among them: research focused on the impact of the home/host national culture on internationalization processes (as existing literature mainly focuses on cultural distance); the role to be played by new theoretical frameworks; and the need to consider cultural positions and cultural friction rather than traditional cultural distance when analyzing internationalization decisions.

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How do high-technology firms create value in international M&A? Integration, autonomy and cross-border contingencies

Cited by 60 publications

References 102 publications

Cross-Border M&As by Chinese Companies in Advanced Countries: Antecedents and Implications

Cross-Border M&As by Chinese Companies in Advanced Countries: Antecedents and Implications

The Roles of Chinese CEOs in Managing Individualistic Cultures in Cross‐border Mergers and Acquisitions

International Business and National Culture: A Literature Review and Research Agenda

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