Emerald Management Reviews

Design/methodology/approach - Constructs a framework of a strategic intent perspective which incorporates three key elements: the roles of rational analysis, of managers and entrepreneurship, and of the external environment. Using the perspective, develops a series of propositions suggesting how Chinese firms might use cross-border mergers and acquisitions to achieve specific goals. Applies the framework to three Chinese firms engaged in foreign direct investment: Lenovo, which acquired IBM's personal computer business; Nanjing Automobile, which acquired the UK's MG Rover; and Huawei, which failed in its attempt to acquire UK telecommunications vendors, Marconi. Explores the companies' strategic intents reflected in their internationalization strategies.

Findings - Illustrates that the three Chinese firms all had a strategic intent perspective when making acquisition decisions: foreign acquisitions were used to compensate for their competitive disadvantages; to leverage their competitive advantages in relation to costs of manufacture, labour and overhead, innovative and effective marketing and service, and innovative products for niche market; and to overcome institutional constraints and augment institutional advantage. Demonstrates, in addition, that the firms' foreign acquisitions were related to entrepreneurial and management skills.

Originality/value - Contributes to the international business theories by incorporating the strategic intent perspective to examine the internationalization strategies of firms from developing countries.