Selective Integration and Autonomy in Chinese Acquisitions in Developed Economies

Chinese MNEs often pursue strategic assets in developed economies via acquisitions. However, we know little about how they manage the challenging post-acquisition integration to enhance their competitive advantage. This paper examines how Chinese firms managed both the level of integration and the autonomy granted to targets after acquiring firms in developed economies. Based on a multiple-case study of five strategic-asset-seeking acquisitions by Chinese MNEs in Europe, we find that Chinese acquirers selectively integrated foreign targets and granted them differentiated levels of autonomy, based on how closely each business function aligns with their acquisition motivations. We argue that this selective integration strategy is jointly shaped by both the acquirers’ acquisition motivations and capability constraints. The study contributes to the literature on EMNEs and international acquisitions by unpacking how integration and autonomy are combined in function-specific ways.