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

Ng, Artie W., Chatzkel, Jay, Lau, K.F. and Macbeth, D.K. (2012) Dynamics of Chinese emerging multinationals in cross-border mergers and acquisitions. Journal of Intellectual Capital, 13 (3), 416-438. (doi:10.1108/14691931211248963).

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.

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