The Role of Value Appropriation Capability of Chinese Multinationals in Operating Cross-Border Business Models

Hanxu Quan, George Kwame Agbanyo, Francesco Caputo and Tachia Chin
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Hanxu Quan: International Business School, Yunnan University of Finance and Economics, Kunming 650221, China
George Kwame Agbanyo: School of Management, Zhejiang University of Technology, Hangzhou 310023, China
Francesco Caputo: Department of Economics, Management and Institutions, University of Naples Federico II, 80100 Naples, Italy
Tachia Chin: School of Management, Zhejiang University of Technology, Hangzhou 310023, China

Sustainability, 2021, vol. 13, issue 17, 1-13

Abstract: In an ever increasingly competitive and unstable global market, multinational corporations (MNCs) are greatly pressurised to use inherent capacities and develop effective cross-border business models (CBMs) that can transform value into the desired outcome. Amid high uncertainties, MNCs are required to develop some critical capabilities to operate CBMs to the best of their ability. More specifically, it is vital for MNCs to have a unique capability that enables them to more effectively synergise with these commonly recognised capabilities (e.g., technological innovation capabilities (TIC) and marketing capability (MC) alongside the global value chain (GVC)) to sustain balance among and gain profits with stakeholders. From the literature review, we first identified value appropriation capability (VAC) as one of the most important capabilities and thereby developed three hypotheses. Based on the hypotheses, we investigated how VAC efficiently moderates MNCs’ capabilities to appositely operate CBMs. Then, empirical panel data between 2011 and 2019 in the Chinese manufacturing industry were used to examine the hypotheses. The results reveal that VAC, TIC and MC positively impact MNC performance. Moreover, VAC–TIC interaction significantly improves MNC performance, and VAC–MC interaction positively improves MNC performance. Our findings provide novel insights into the CBM literature by examining the importance of VAC for operating CBMs alongside its multifaceted effects on MNC performance, especially in times of uncertainty.

Keywords: cross-border business models; value appropriation; technological innovation capability; marketing capability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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