Access to global market of China��s private firms in manufacturing: A multiple cases study of cross-border M&A

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The research examines the issue of cross-border merger and acquisition (M&A) by firms from China in developed countries: an important phenomenon that has recently found increasing emphasis in international business study. In analyzing Chinese acquisitions of foreign firms in the different industry, the paper addresses the question of why firms from emerging countries are willing to acquire companies from industrialized economies, and what capabilities to support them to bid successful in the global market. Using cases study evidence and interview data, the paper finds explanations for the decision to finish the M&A action to both of Chinese firms and overseas target firms. The results show that foreign firms can gain substantially from the global ambitions of the Chinese private firms for the advantages of their own business objectives. This is due to complementarities in the motivations for engaging in the deals, as well as the underlying international development needs of both firms. Most importantly, in the context of smaller-scale firms in emerging countries acquiring advanced economy firms, motivations on both sides of the acquisitions appear to go beyond the commonly known goals such as technology transfer and market access, as the acquisitions provide the firms involved with conditions favorable to expansion into previously inaccessible market segments in home or host countries.