Comparison of State-owned and private emerging market enterprises’ (EMEs) internationalization: case studies of Chinese state-owned and private automobile enterprises’ cross-border acquisitions.

Wang, Si (2013) Comparison of State-owned and private emerging market enterprises’ (EMEs) internationalization: case studies of Chinese state-owned and private automobile enterprises’ cross-border acquisitions. [Dissertation (University of Nottingham only)] (Unpublished)

[img] PDF - Registered users only - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Download (1MB)

Abstract

This research examines the internationalization behaviors of firms from emerging markets. Through adopting the framework of the three pillars of institutions and integrating the traditional theories with the institution-based view in explaining the international expansions of firms from emerging markets, the study enables us to compare the different roles that institutional drivers play in state-owned emerging market enterprises (EMEs) and private EMEs’ internationalization as well as the different motives for their cross-border expansions. Some challenges for these two types of firms’ international expansions can also be drawn based on the discussions.

Using the case studies of a Chinese state-owned automobile firm NAC’s acquisition of MG Rover and a Chinese private automobile enterprise Geely’s purchase of Volvo, we find that in terms of the regulative pillar of institutions, the state-owned firm’s international expansion is the result of the favorable institutional environment while the private firm is pushed to expand internationally because of the unfavorable domestic institutional environment. As for the normative pillar of institutions, in the home country, even though the state-owned firm’s international expansion meets the government’s expectations for it; the public do not have high expectations for the firm considering of its limited abilities. In contrast, the public have high expectations for the private enterprise’s international expansion to show national flag and bring national pride for them. In reference to the cultural-cognitive pillar of institutions, the finding shows that the driver for state-owned firm’s acquisition is the chairman’s attempt to make a contribution to the national success whereas the private enterprise’s acquisition is driven by the chairman’s desire to expand globally for profit-making. In addition, compared with the state-owned firm, the market seeking motive is more prominent in private firm’s cross-border expansion but the strategic assets seeking motive is prominent in both firms’ acquisitions. Different challenges such as the limited ability of the state-owned enterprise in reviving the acquired firm and financing pressure for the private firm can also be discovered.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 07 Mar 2014 15:17
Last Modified: 22 Oct 2016 15:36
URI: http://eprints.nottingham.ac.uk/id/eprint/26675

Actions (Archive Staff Only)

Edit View Edit View