Strategic asset-seeking acquisitions and marketing capabilities of Chinese multinationals: An ability, motivation, and opportunity perspective

Abstract

This study explores the drivers of marketing capabilities of Chinese multinationals in the context of strategic asset-seeking acquisitions, which remain largely unexplored. Drawing on the integrative framework of the ability-motivation-opportunity (AMO) framework and the knowledge-based view, we argue that the decline in cost leadership capabilities before the acquisitions increases the motivation of Chinese multinationals to leverage the acquired strategic assets to enhance their marketing capabilities. Stronger managerial ability and higher regional international openness represent the ability component and favorable environmental conditions required to realize improvements in marketing capabilities. In contrast, industry dynamism, as an opportunity element, can constrain the achievement of this goal. We conduct an empirical analysis using the Heckman two-stage model, based on a sample of Chinese listed firms spanning the period from 2009 to 2021, and find support for our arguments in the results. Our findings contribute to the marketing literature by identifying a potential avenue for enhancing marketing capabilities and to the international business literature by investigating a new approach for emerging economy multinational enterprises (EMNEs) utilizing international M&As as a springboard to build competitive advantages of EMNEs in addition to improving innovation capabilities.