Selective imitation of compatriot firms: Entry mode decisions of emerging market multinationals in cross-border acquisitions

Zhenzhen Xie () and Jiatao Li ()
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Zhenzhen Xie: Tsinghua University
Jiatao Li: Hong Kong University of Science & Technology

Asia Pacific Journal of Management, 2017, vol. 34, issue 1, No 3, 47-68

Abstract: Abstract This research investigates imitation in cross-border acquisitions (CBAs) by emerging market multinationals (EMNCs) in terms of the equity share sought in such acquisitions. Earlier acquisitions by peer compatriots and by developed-market multinationals (DMNCs) are both models for imitation, but the former are more similar and potentially relevant. Analysis of 608 CBAs by Chinese firms between 1987 and 2008 supports the above argument. Further, it reveals that state-owned Chinese firms are less likely to imitate in general. Both state-owned and privately-owned Chinese acquirers are most likely to imitate privately-owned Chinese acquirers previously invested in the same environment. For state-owned Chinese acquirers, more frequent pursuit of a particular target share by earlier state-owned Chinese acquirers decreases rather than increases the likelihood of a later state-owned Chinese investors buying a similar share.

Keywords: Imitation; Cross-border acquisitions; Ownership shares; State ownership; Emerging markets; China (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (20)

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DOI: 10.1007/s10490-016-9459-y

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