Drivers and Motivations of Outward FDI in EMEs: A Comparison in Cross-border M&A between China and India

This paper comparatively investigates the major factors that determine the strategic international extension by emerging market firms. By means of selecting four cross-border merger and acquisition (M&A) cases from China and India, the paper provides an integrative comparison based on general th...

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Main Author: ZHAO, YUE
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2014
Online Access:https://eprints.nottingham.ac.uk/27420/
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author ZHAO, YUE
author_facet ZHAO, YUE
author_sort ZHAO, YUE
building Nottingham Research Data Repository
collection Online Access
description This paper comparatively investigates the major factors that determine the strategic international extension by emerging market firms. By means of selecting four cross-border merger and acquisition (M&A) cases from China and India, the paper provides an integrative comparison based on general theories and empirical studies to justify how institutional factors drive the determinations of emerging market enterprises’ (EMEs) strategic decisions as well as the factors to motive international expansions. In addition, the paper analyzes challenges during and after the deal by multinational enterprises (MNEs) in cases and notes some further suggestions after comparative study between Chinese and Indian cross-border M&A cases. Through two Chinese MNEs cases (Geely’s acquisition of Volvo and CNOOC’s purchase of Nexen) and two Indian MNEs cases (Tata’s acquisition of JLR and Mittal’s purchase of Arcelor), we found that the Chinese government plays a more favorable and supportive role than Indian government in terms of the institutional aspect which drives EMEs’ internationalization. As for motive of cross-border M&A, Indian MNEs concern more about asset-seeking and escaping from institutional policies or market competition, which are also important pillars for Chinese MNEs. Besides, resource-seeking is another motivation for Chinese MNEs. The paper also discovers the different challenges and gaps between Chinese MNEs’ and Indian MNEs’ cross-border M&A activities.
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spelling nottingham-274202017-10-19T13:59:22Z https://eprints.nottingham.ac.uk/27420/ Drivers and Motivations of Outward FDI in EMEs: A Comparison in Cross-border M&A between China and India ZHAO, YUE This paper comparatively investigates the major factors that determine the strategic international extension by emerging market firms. By means of selecting four cross-border merger and acquisition (M&A) cases from China and India, the paper provides an integrative comparison based on general theories and empirical studies to justify how institutional factors drive the determinations of emerging market enterprises’ (EMEs) strategic decisions as well as the factors to motive international expansions. In addition, the paper analyzes challenges during and after the deal by multinational enterprises (MNEs) in cases and notes some further suggestions after comparative study between Chinese and Indian cross-border M&A cases. Through two Chinese MNEs cases (Geely’s acquisition of Volvo and CNOOC’s purchase of Nexen) and two Indian MNEs cases (Tata’s acquisition of JLR and Mittal’s purchase of Arcelor), we found that the Chinese government plays a more favorable and supportive role than Indian government in terms of the institutional aspect which drives EMEs’ internationalization. As for motive of cross-border M&A, Indian MNEs concern more about asset-seeking and escaping from institutional policies or market competition, which are also important pillars for Chinese MNEs. Besides, resource-seeking is another motivation for Chinese MNEs. The paper also discovers the different challenges and gaps between Chinese MNEs’ and Indian MNEs’ cross-border M&A activities. 2014-09-18 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/27420/1/Dissertatoin_%E2%80%94%E2%80%94YUE_ZHAO.pdf ZHAO, YUE (2014) Drivers and Motivations of Outward FDI in EMEs: A Comparison in Cross-border M&A between China and India. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle ZHAO, YUE
Drivers and Motivations of Outward FDI in EMEs: A Comparison in Cross-border M&A between China and India
title Drivers and Motivations of Outward FDI in EMEs: A Comparison in Cross-border M&A between China and India
title_full Drivers and Motivations of Outward FDI in EMEs: A Comparison in Cross-border M&A between China and India
title_fullStr Drivers and Motivations of Outward FDI in EMEs: A Comparison in Cross-border M&A between China and India
title_full_unstemmed Drivers and Motivations of Outward FDI in EMEs: A Comparison in Cross-border M&A between China and India
title_short Drivers and Motivations of Outward FDI in EMEs: A Comparison in Cross-border M&A between China and India
title_sort drivers and motivations of outward fdi in emes: a comparison in cross-border m&a between china and india
url https://eprints.nottingham.ac.uk/27420/