Acquisition Entry Strategy of Nordic Multinational Enterprises in China: An Analysis of Key Determinants

Arslan, Ahmad and Wang, Yi (2014) Acquisition Entry Strategy of Nordic Multinational Enterprises in China: An Analysis of Key Determinants. Journal of Global Marketing, 28 (1). pp. 32-51. ISSN 0891-1762 DOI https://doi.org/10.1080/08911762.2014.965865

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Abstract

This article addresses the key determinants of acquisition entry strategy (i.e., the choice between full versus partial acquisition) of Nordic multinational enterprises (MNEs) in China. Although general establishment and entry mode strategies have been a highly researched area in international business studies, acquisitions as a specific entry strategy and its different aspects have been scarcely researched. Therefore, the current study aims to fill the gap in literature by analyzing determinants of acquisition entry strategy based on three important theoretical bases: transaction cost economics, resource-based view, and institutional theory. Our study is one of the first to analyze acquisition entry strategy of MNEs from all four Nordic economies (Denmark, Finland, Norway, and Sweden) in China during 1987 through 2012, and this unique empirical context adds further value to the study findings. The empirical results show that high target country experience, high cultural distance, high level of product diversification, and subsidiary location in institutionally developed and open cities of China were positively associated with choice of full acquisitions by Nordic MNEs. On the other hand, high industry research and development intensity and timing of acquisition led to the choice of partial acquisitions by the investing Nordic MNEs.

Item Type: Article
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Business and Management
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Date Deposited: 28 Apr 2015 09:31
URI: http://repository.edgehill.ac.uk/id/eprint/6381

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