Title: Chinese overseas M&A: overcoming cultural and organisational divides
Authors: Francesca Spigarelli; Ilan Alon; Attilio Mucelli
Department of Law, University of Macerata, via Angeloni, 3 Jesi (An), Italy
Department of International Business, Rollins College, Winter Park, 1000 Holt Avenue, 32789 Florida, USA
Department of Management, College of Economics 'Giorgio Fuà', Polytechnic University of Marche, Piazzale Martelli, 8 – 60121 Ancona, Italy
Abstract: This article contributes to the existing knowledge on the difficulties and critical aspects of the post-acquisition phase of an emerging market multinational. To establish the context, a literature review on multinational companies from emerging countries, and specifically on the internationalisation initiatives of Chinese companies, is provided, along with a framework to analyse cultural and management-related differences related to mergers and acquisitions (M&As). This review and framework is followed by a case study of a Chinese M&A in Italy. The case illustrates how Chinese companies use Italy to access Western markets (and strategic logistical services), as well as a wide range of distinct skills/intangible assets, such as brands, know-how and technology, particularly in the manufacturing industries. The findings suggest that while superficial product-portfolio and cost benefits can accrue due to the acquisition, cultural and administrative differences and lack of synergies can prevent the acquirer from fully integrating the intangible assets, particularly human resource talent, of the acquired firm.
Keywords: merger and acquisitions; emerging markets; emerging market multinationals; post-acquisition integration; case study; overseas M&A; Chinese M&A; China; multinational coporations; China; cultural divide; organisational divide; Italy; cultural differences; administrative differences; lack of synergies; intangible assets; human resources.
Int. J. of Technological Learning, Innovation and Development, 2013 Vol.6, No.1/2, pp.190 - 208
Available online: 26 Jan 2013