The internationalization of Chinese industries: Overseas acquisition activity in Chinese mining and manufacturing industries

Chaohong Zhou, Arjen Van Witteloostuijn, Jianhong Zhang*

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

This study examines how industrial characteristics at home affect Chinese overseas acquisition activities from an industry-level resource-based view. Analyzing data on 512 Chinese overseas acquisition deals across 36 industries in 60 countries over 2003-2008, we find that: (1) firms in industries with higher levels of technology intensity are more likely to acquire foreign firms, while firms in labor-intensive industries are more likely to stay at home; and (2) the relationship between technology gap and international acquisition activity is hill-shaped. This implies that overseas acquisition is particularly attractive for developing Asian firms in industries with high technology intensity, and a medium-sized technology gap is essential for identifying potential targets.

Original languageEnglish
Pages (from-to)89-116
Number of pages28
JournalAsian Business and Management
Volume13
Issue number2
DOIs
Publication statusPublished - 1 Apr 2014
Externally publishedYes

Keywords

  • acquisitions
  • China
  • internationalization
  • resource-based view

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