Online from: 2000
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|Title:||Dynamics of Chinese emerging multinationals in cross-border mergers and acquisitions|
|Author(s):||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)|
|Citation:||Artie W. Ng, Jay Chatzkel, K.F. Lau, Douglas Macbeth, (2012) "Dynamics of Chinese emerging multinationals in cross-border mergers and acquisitions", Journal of Intellectual Capital, Vol. 13 Iss: 3, pp.416 - 438|
|Keywords:||Acquisitions and mergers, China, Chinese culture, Chinese multinationals, Dynamic capabilities, Intellectual capital, Knowledge transfer, Multinational companies, Reverse technology transfer|
|Article type:||Research paper|
|DOI:||10.1108/14691931211248963 (Permanent URL)|
|Publisher:||Emerald Group Publishing Limited|
|Acknowledgements:||The authors are grateful for the comments provided by the reviewers on an earlier version of this paper presented in the Academy of International Business Southeast Asia Regional Conference in 2009, as well as for the subsequent comments by the other reviewers and Professor Peter Walters of The Hong Kong Polytechnic University on its revisions.|
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.