| Summary: | This research examines the internationalisation activities of firms from emerging economies. By integrating traditional theories with institutional-based view and its three pillars, this study allow us to examine how the government influence international expansion of firms with different ownership structure (state-owned and private-owned) vertically (with government level) and horizontally (with regional specific marketization). The study also highlights different motives of internationalisation for state-owned and private-owned enterprises.
Using case study as research method, this study has a close examination of state-owned firm SAIC Motor’s acquisition of SsangYong Motor Company and private-owned firm Geely Holding Group’s acquisition of Volvo Car Corporation. This study finds out that while the improvement of regional marketization facilitates private firm Geely’s performance of internationalisation, it has a negative influence on SAIC’s international activities. In addition, it is found in this study that based on high development of regional marketization, both state-owned and private-owned firms are now motivated by strategic assets seeking. Different from SAIC’s consistency, Geely experienced transforming of motives from efficiency seeking to strategic assets seeking as the marketization improving. Last but not least, the study points out that both SAIC’s and Geely’s internationalisation are strongly affected by their affiliation with different levels of government. However, even though both two firms are facilitated by central government, they faced contrasting treatments from lower level of government: SAIC was encouraged to internationalise while Geely was constrained.
|
|---|