Work

Subsidiary capability upgrading under emerging market acquirers

Year: 2017

Type: article

Abstract: This article leverages a case study of a recent Chinese acquisition in the United Kingdom to explore the upgrading of capabilities in the subsidiaries in developed countries acquired by emerging market multinational enterprises (EMNEs). The seemingly implausible upgrading phenomenon is explained by the EMNEs’ complementary assets, their GVC lead firm positions and the unique power relationship between the acquirer and acquired firms, which enable the EMNEs to ‘impel’ upgrading and encourage ‘co-learning’ in their acquired subsidiaries. The contributions to the literature on EMNEs, global value chains, and organizational learning are outlined and discussed.

Source: Journal of World Business

DOI: 10.1016/j.jwb.2017.11.006

Authors: Shaowei He, Zaheer Khan, Oded Shenkar

Institutions: Guangdong University Of Finances and Economics, University of Northampton, University of Kent, The Ohio State University

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $4,750

Funder: Leverhulme Trust