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Asia Pacific Journal of Management
Published in: Asia Pacific Journal of Management 1/2017

13-02-2016

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

Authors: Zhenzhen Xie, Jiatao Li

Published in: Asia Pacific Journal of Management | Issue 1/2017

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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.
previous article Marketized state ownership and foreign expansion of emerging market multinationals: Leveraging institutional competitive advantages
next article Internationalization within networks: Exploring the relationship between inward and outward FDI in China’s auto components industry

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Metadata
Title
Selective imitation of compatriot firms: Entry mode decisions of emerging market multinationals in cross-border acquisitions
Authors
Zhenzhen Xie
Jiatao Li
Publication date
13-02-2016
Publisher
Springer US
Published in
Asia Pacific Journal of Management / Issue 1/2017
Print ISSN: 0217-4561
Electronic ISSN: 1572-9958
DOI
https://doi.org/10.1007/s10490-016-9459-y

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