Selective imitation of compatriot firms: Entry mode decisions of emerging market multinationals in cross-border acquisitions

Zhenzhen Xie, Jiatao Li

Research output: Journal PublicationArticlepeer-review

37 Citations (Scopus)

Abstract

This research investigates imitation in cross-border acquisitions (CBAs) by emerging market multinationals (EMNCs) in terms of the equity share sought in such acquisitions. Earlier acquisitions by peer compatriots and by developed-market multinationals (DMNCs) are both models for imitation, but the former are more similar and potentially relevant. Analysis of 608 CBAs by Chinese firms between 1987 and 2008 supports the above argument. Further, it reveals that state-owned Chinese firms are less likely to imitate in general. Both state-owned and privately-owned Chinese acquirers are most likely to imitate privately-owned Chinese acquirers previously invested in the same environment. For state-owned Chinese acquirers, more frequent pursuit of a particular target share by earlier state-owned Chinese acquirers decreases rather than increases the likelihood of a later state-owned Chinese investors buying a similar share.

Original languageEnglish
Pages (from-to)47-68
Number of pages22
JournalAsia Pacific Journal of Management
Volume34
Issue number1
DOIs
Publication statusPublished - 1 Mar 2017
Externally publishedYes

Keywords

  • China
  • Cross-border acquisitions
  • Emerging markets
  • Imitation
  • Ownership shares
  • State ownership

ASJC Scopus subject areas

  • Business and International Management
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management

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