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

Artie W. Ng (College of Professional and Continuing Education, School of Professional Education and Executive Development, and Public Policy Research Institute, The Hong Kong Polytechnic University, Kowloon, Hong Kong)
Jay Chatzkel (Progressive Practices, New River, Arizona, USA)
K.F. Lau (College of Professional and Continuing Education, School of Professional Education and Executive Development, The Hong Kong Polytechnic University, Kowloon, Hong Kong)
Douglas Macbeth (Department of Management, University of Southampton, Southampton, UK)

Journal of Intellectual Capital

ISSN: 1469-1930

Publication date: 20 July 2012

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.

Keywords

Citation

Ng, A., Chatzkel, J., Lau, K. and Macbeth, D. (2012), "Dynamics of Chinese emerging multinationals in cross‐border mergers and acquisitions", Journal of Intellectual Capital, Vol. 13 No. 3, pp. 416-438. https://doi.org/10.1108/14691931211248963

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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