Aggressive acquirers, laidback owners? Organisational dynamics of subsidiary integration in Chinese MNCs

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Abstract

Why do Chinese MNCs appear to be ‘aggressive’ in cross-border acquisition (Zeng and Williamson, 2003) yet ‘laidback’ (Liu and Woywode, 2013) in consolidating subsidiaries in developed economies? This paper addresses this question by examining power dynamics underpinning subsidiary integration and by bridging two relatively disconnected streams of literature in international business: subsidiary integration of emerging market MNCs in advanced economies, and the power relations inside MNCs. An exploratory case study is outlined to examine a Chinese MNC’s attempt to consolidate a newly acquired Canadian subsidiary. The findings suggest developing process-based power is critical to subsidiary integration for Chinese MNCs.
Original languageEnglish
Pages (from-to)317–342
Number of pages26
JournalAsian Business & Management
Volume15
Issue number4
Early online date28 Jul 2016
DOIs
Publication statusPublished - Sept 2016

Keywords

  • Chinese private firms
  • emerging market MNCs
  • international acquisition
  • power relations
  • strategic-asset augmentation
  • subsidiary integration

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