Title
The internationalization of Chinese industries : overseas acquisition activity in Chinese mining and manufacturing industries The internationalization of Chinese industries : overseas acquisition activity in Chinese mining and manufacturing industries
Author
Faculty/Department
Faculty of Applied Economics
Publication type
article
Publication
Subject
Economics
Source (journal)
Asian Business & Management
Volume/pages
13(2014) :2 , p. 89-116
ISSN
1472-4782
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
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 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.