Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang
This paper examines the location decision on cross-border mergers and acquisitions (M&As) of Chinese multinational corporations (MNCs). Logistic regression technique is employed to test the motives of Chinese MNCs’ M&As between 2004 and 2006 in developed countries vs. developing countries. W...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Published: |
Faculty of Business Management
2013
|
| _version_ | 1825733842869157888 |
|---|---|
| author | Guohua, Jiang Jiang, Guohua |
| author_facet | Guohua, Jiang Jiang, Guohua |
| author_sort | Guohua, Jiang |
| collection | UITM |
| description | This paper examines the location decision on cross-border mergers and acquisitions (M&As) of Chinese multinational corporations (MNCs). Logistic regression technique is employed to test the motives of Chinese MNCs’ M&As between 2004 and 2006 in developed countries vs. developing countries. We find that strategic asset-seeking, in particular technology-seeking, is the major reason for Chinese firms to merge or acquire firms from developed countries, whereas their M&As in developing countries are largely motivated by resource-seeking. A closer examination suggests that technology-seeking M&As might be motivated not only by an objective to learn from developed country firms but also by a desire to prevent the competing firms from getting ahead in the technology race, especially firms from other developing countries. Findings of this study have implications for policy makers of catching up economies in assisting firms’ learning and international competition. |
| first_indexed | 2024-03-06T01:23:04Z |
| format | Article |
| id | oai:ir.uitm.edu.my:8733 |
| institution | Universiti Teknologi MARA |
| last_indexed | 2024-03-06T01:23:04Z |
| publishDate | 2013 |
| publisher | Faculty of Business Management |
| record_format | dspace |
| spelling | oai:ir.uitm.edu.my:87332019-10-23T06:31:14Z https://ir.uitm.edu.my/id/eprint/8733/ Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang bmqr Guohua, Jiang Jiang, Guohua This paper examines the location decision on cross-border mergers and acquisitions (M&As) of Chinese multinational corporations (MNCs). Logistic regression technique is employed to test the motives of Chinese MNCs’ M&As between 2004 and 2006 in developed countries vs. developing countries. We find that strategic asset-seeking, in particular technology-seeking, is the major reason for Chinese firms to merge or acquire firms from developed countries, whereas their M&As in developing countries are largely motivated by resource-seeking. A closer examination suggests that technology-seeking M&As might be motivated not only by an objective to learn from developed country firms but also by a desire to prevent the competing firms from getting ahead in the technology race, especially firms from other developing countries. Findings of this study have implications for policy makers of catching up economies in assisting firms’ learning and international competition. Faculty of Business Management 2013 Article NonPeerReviewed Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang. (2013) Business and Management Quarterly Review (BMQR) <https://ir.uitm.edu.my/view/publication/Business_and_Management_Quarterly_Review_=28BMQR=29/>, 4 (2). pp. 1-11. ISSN 2180-2777 http://www.bmqruitm.com/ |
| spellingShingle | Guohua, Jiang Jiang, Guohua Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang |
| title | Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang |
| title_full | Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang |
| title_fullStr | Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang |
| title_full_unstemmed | Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang |
| title_short | Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang |
| title_sort | determining critical factors of location choice of cross border merger and acquisition the case of chinese firms feng zhang and guohua jiang |
| work_keys_str_mv | AT guohuajiang determiningcriticalfactorsoflocationchoiceofcrossbordermergerandacquisitionthecaseofchinesefirmsfengzhangandguohuajiang AT jiangguohua determiningcriticalfactorsoflocationchoiceofcrossbordermergerandacquisitionthecaseofchinesefirmsfengzhangandguohuajiang |