The internationalization of Chinese industries : overseas acquisition activity in Chinese mining and manufacturing industries
van Witteloostuijn, Arjen
Faculty of Applied Economics
Asian Business & Management
, p. 89-116
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 20032008, 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.