How Do Emerging Market Multinational Enterprises Build a Global Ecosystem: A Post-merger Integration

Abstract

How do emerging market multinational enterprises (EMNEs) build global ecosystems through cross-border mergers and acquisitions? This research conducts case studies on Haier Group's post-merger integration processes of 4 overseas companies. This paper proposes a three-dimension theoretical framework to understand global ecosystem development: ecosystem structure, ecosystem stage, ecosystem element. This paper finds that, unlike the linear structure of global supply chains and value chains, the global ecosystem has a non-linear, multi-agent structure composed of value chains and resource pools. In the process of building a global ecosystem, a dynamic three-stage process of influence, integration, and evolution emerges. At different stages, the focal firm of the ecosystem has shown heterogeneous focus in terms of ecosystem vision, ecosystem system and ecosystem capability. The research findings integrate business ecosystem theory and cross-border M&A theory, which have practical implications for EMNEs to go global and establish a global ecosystem.