Subsidiary capability upgrading under emerging market acquirers

Shaowei He, Zaheer Khan, Oded Shenkar

Research output: Contribution to journalArticle

Abstract

This article leverages a case study of a recent Chinese acquisition in the United Kingdom to explore the upgrading of capabilities in the subsidiaries in developed countries acquired by emerging market multinational enterprises (EMNEs). The seemingly implausible upgrading phenomenon is explained by the EMNEs’ complementary assets, their GVC lead firm positions and the unique power relationship between the acquirer and acquired firms, which enables the EMNEs to ‘impel’ upgrading and encourage ‘co-learning’ in their acquired subsidiaries. The contributions to the literature on EMNEs, global value chains, and organizational learning are outlined and discussed.
Original languageEnglish
JournalJournal of World Business
Volume53
Issue number2
Early online date7 Dec 2017
DOIs
Publication statusE-pub ahead of print - 7 Dec 2017

Fingerprint

Multinational enterprises
Emerging market multinationals
Upgrading
Emerging markets
Subsidiaries
Complementary assets
Leverage
Developed countries
Global value chains
Organizational learning

Keywords

  • China
  • Emerging economy multinational enterprises
  • acquisition
  • learning
  • subsidiary
  • upgrading

Cite this

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abstract = "This article leverages a case study of a recent Chinese acquisition in the United Kingdom to explore the upgrading of capabilities in the subsidiaries in developed countries acquired by emerging market multinational enterprises (EMNEs). The seemingly implausible upgrading phenomenon is explained by the EMNEs’ complementary assets, their GVC lead firm positions and the unique power relationship between the acquirer and acquired firms, which enables the EMNEs to ‘impel’ upgrading and encourage ‘co-learning’ in their acquired subsidiaries. The contributions to the literature on EMNEs, global value chains, and organizational learning are outlined and discussed.",
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Subsidiary capability upgrading under emerging market acquirers. / He, Shaowei; Khan, Zaheer; Shenkar, Oded.

In: Journal of World Business, Vol. 53, No. 2, 07.12.2017.

Research output: Contribution to journalArticle

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AU - Khan, Zaheer

AU - Shenkar, Oded

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KW - Emerging economy multinational enterprises

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