Ownership strategies in knowledge-intensive cross-border acquisitions: comparing Chinese and Indian MNEs

Scalera, V. G., Mukherjee, D. and Piscitello, L. (2020) Ownership strategies in knowledge-intensive cross-border acquisitions: comparing Chinese and Indian MNEs. Asia Pacific Journal of Management, 37. pp. 155-185. ISSN 1572-9958 doi: 10.1007/s10490-018-9616-6

Abstract/Summary

Drawing on the comparative ownership framework, we perform a comparative analysis of Chinese and Indian multinational enterprises (MNEs)’ ownership strategies in knowledge-intensive cross-border acquisitions (CBAs). Specifically, we claim that due to their lower comparative ownership advantage, and the consequent higher information asymmetry, Chinese MNEs are more cautious (than Indian MNEs) in their ownership strategy. We rely on a dataset of acquisitions undertaken by high and medium-high tech Chinese and Indian MNEs worldwide during the period of 2000-2014. Results confirm that Chinese MNEs prefer lower equity control than their Indian counterparts. However, such a preference for lower equity decreases with higher home-host institutional distance and host country-specific previous experience. These factors do not seem to modify the ownership preference of Indian MNEs in the same way.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/79856
Identification Number/DOI	10.1007/s10490-018-9616-6
Refereed	Yes
Divisions	Henley Business School > International Business and Strategy
Publisher	Springer
Download/View statistics	View download statistics for this item