Acquisition Entry Strategy of Nordic Multinational Enterprises in China: An Analysis of Key Determinants

Ahmad Arslan, Yi Wang

Research output: Contribution to journalArticle

8 Citations (Scopus)
7 Downloads (Pure)

Abstract

This article addresses the key determinants of acquisition entry strategy (i.e., the choice between full versus partial acquisition) of Nordic multinational enterprises (MNEs) in China. Although general establishment and entry mode strategies have been a highly researched area in international business studies, acquisitions as a specific entry strategy and its different aspects have been scarcely researched. Therefore, the current study aims to fill the gap in literature by analyzing determinants of acquisition entry strategy based on three important theoretical bases: transaction cost economics, resource-based view, and institutional theory. Our study is one of the first to analyze acquisition entry strategy of MNEs from all four Nordic economies (Denmark, Finland, Norway, and Sweden) in China during 1987 through 2012, and this unique empirical context adds further value to the study findings. The empirical results show that high target country experience, high cultural distance, high level of product diversification, and subsidiary location in institutionally developed and open cities of China were positively associated with choice of full acquisitions by Nordic MNEs. On the other hand, high industry research and development intensity and timing of acquisition led to the choice of partial acquisitions by the investing Nordic MNEs.
Original languageEnglish
Pages (from-to)32-51
Number of pages20
JournalJournal of Global Marketing
Volume28
Issue number1
Early online date6 Nov 2014
DOIs
Publication statusPublished - 1 Jan 2015

Fingerprint

China
Entry strategy
Nordic
Multinational enterprises
Partial acquisitions
Norway
Business studies
Resource-based view
Denmark
Institutional theory
Product diversification
Entry mode
International business
Subsidiaries
Transaction cost economics
Investing
Cultural distance
Empirical results
Industry
Sweden

Keywords

  • China
  • Nordic multinational enterprises
  • foreign market entry
  • full acquisition
  • partial acquisition

Cite this

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Acquisition Entry Strategy of Nordic Multinational Enterprises in China: An Analysis of Key Determinants. / Arslan, Ahmad; Wang, Yi.

In: Journal of Global Marketing, Vol. 28, No. 1, 01.01.2015, p. 32-51.

Research output: Contribution to journalArticle

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