Authors: Alessandra Vecchi
Addresses: Department of Management, University of Bologna, Via Capo di Lucca 34, 44123 Bologna, Italy
Abstract: Outward foreign direct investment (OFDI) from emerging economies has begun to increase significantly and has been growing at a faster pace than FDI from the developed world. This research seeks to assess the impact of Chinese acquisitions and their implications for the Italian firms in the luxury manufacturing sector. This paper presents a cross-case analysis of two Chinese acquisitions in order to provide some in-depth insights into the strategic drivers moving the Chinese firms to invest in the luxury manufacturing sector, the post-acquisition benefits and challenges as well as the distinctive integration strategies. The study contributes to our understanding of how emerging market firms acquire and integrate firms from advanced economies, and how such acquisitions contribute to the acquiring firms' performance and competitiveness. To this end, strategic drivers, post-acquisition benefits and challenges as well as integration strategies were identified.
Keywords: Chinese acquisitions; made in Italy; luxury manufacturing; manufacturing industry; outward FDI; foreign direct investment; OFDI; emerging markets; strategic drivers; post-acquisition benefits; post-acquisition challenges; integration strategies.
International Journal of Business and Emerging Markets, 2016 Vol.8 No.3, pp.276 - 306
Received: 28 Apr 2015
Accepted: 22 Aug 2015
Published online: 06 Jul 2016 *