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

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 [Dissertation (University of Nottingham only)] (Unpublished)

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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.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 11 Nov 2014 16:14
Last Modified: 16 Sep 2016 02:31

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