Comparison of State-owned and Private-owned Emerging Market Enterprises’ Internationalization: Case Studies of State-owned China Mobile’s and Private-owned Huawei’s Cross-border Acquisitions.

Kaneva, Mariya (2014) Comparison of State-owned and Private-owned Emerging Market Enterprises’ Internationalization: Case Studies of State-owned China Mobile’s and Private-owned Huawei’s Cross-border Acquisitions. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

This research examines the cross-border activities of emerging market enterprises.By incorporating the mainstream theories of internationalization with institutional theory and analyzing the seemingly contrasting views within institutional theory of institutional escapism and government support in pushing the international expansion of firms from emerging markets, this study allows us to see the different determinants for internationalization of firms with different ownership structure. The research also highlights the different motives of cross-border expansion for state-owned and private-owned firms.

Adopting the multiple case study approach, this dissertation focuses on state-owned China Mobile’s acquisition of Pakistan’s telecommunications company Paktel Ltd., and private-owned Huawei’s acquisition of UK-based R&D laboratory CIP Technologies. The research finds that China Mobile’s international expansion is facilitated by the favorable domestic regulative institutional environment. Although no explicit information was found that Huawei’s acquisition was an escape response to unfavorable policies and regulations towards private firms, analysis of the available data shows that this may be the case. In addition, the research finds that normative institutional elements in the home market have a stronger influence on state-owned China Mobile’s foreign acquisition than on Huawei’s. Last but not least, this research also highlights the different motivations state-owned and private-owned firms may have when making cross-border acquisition. It is found that China Mobile is more strongly motivated to expand in order to seek additional markets for its products and services whereas Huawei’s motivation is to seek strategic assets due to the constraining domestic institutional environment which hinders the firm from developing such assets at home.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 11 Nov 2014 15:15
Last Modified: 23 Oct 2016 19:40
URI: http://eprints.nottingham.ac.uk/id/eprint/27296

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