Psychic Distance’s Impact on China’s Reverse M&A Innovation

Yiran Zhao, Qin Ye and Jianfeng Cai

Emerging Markets Finance and Trade, 2025, vol. 61, issue 5, 1249-1272

Abstract: In this study, we examined Chinese firms’ cross-border reverse mergers and acquisitions (M&As). From the perspective of internal and external uncertainties, as well as the essence of psychic distance (PD), we established five dimensions of the PD of cross-border reverse M&A: cultural distance, national image, degree of internationalization, top management team (TMT)‘s overseas background, and perceived distance. Using fuzzy-set qualitative comparative analysis (fsQCA), we found that the impact of PD on innovation performance was a combination of multiple factors, showing three types of configurations: external uncertainty dominant, internal uncertainty dominant, and perceived distance dominant. We further explored the interactions between knowledge conditions, such as firm size, industry relevance, and relative knowledge scale, and PD. This study supplements and expands current theories on the internationalization of emerging market enterprises from the perspective of latecomer countries.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2024.2412049 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:61:y:2025:i:5:p:1249-1272

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2024.2412049

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().