Entry mode and emerging market MNES : an analysis of Chinese Greenfield and acquisition FDI in the United States

Anderson, J.; Sutherland, D.

doi:10.1016/j.ribaf.2015.03.008

Entry mode and emerging market MNES : an analysis of Chinese Greenfield and acquisition FDI in the United States

Anderson, J.; Sutherland, D.

Authors

J. Anderson

Professor Dylan Sutherland dylan.sutherland@durham.ac.uk
Professor

Abstract

A growing theoretical literature on emerging market MNEs argues they use aggressive acquisitions, often to psychically distant, developed host countries, to obtain the strategic assets. The use of acquisitions as the dominant entry mode for strategic asset seeking, therefore, stands at heart of current EM MNE theorizing. To date, however, systematic empirical testing of the motivations for different entry modes by EM MNEs is limited. We address this gap by exploring the motivations for Chinese greenfield and acquisitions in the United States. Our results are broadly supportive of the growing theoretical literature on EM MNEs, arguing acquisitions are the primary mode of strategic asset seeking in developed markets. We also find state ownership impacts strategic assets seeking and strategic asset seeking intensified in the post global financial crisis period.

Citation

Anderson, J., & Sutherland, D. (2015). Entry mode and emerging market MNES : an analysis of Chinese Greenfield and acquisition FDI in the United States. Research in International Business and Finance, 25, 88-103. https://doi.org/10.1016/j.ribaf.2015.03.008

Journal Article Type	Article
Acceptance Date	Mar 24, 2015
Publication Date	Sep 1, 2015
Deposit Date	Feb 7, 2015
Publicly Available Date	Oct 3, 2016
Journal	Research in International Business and Finance
Print ISSN	0275-5319
Publisher	Elsevier
Peer Reviewed	Peer Reviewed
Volume	25
Pages	88-103
DOI	https://doi.org/10.1016/j.ribaf.2015.03.008
Keywords	China, Outward FDI, Location choice, Entry mode, Financial crisis, Acquisition, Greenfield.
Public URL	https://durham-repository.worktribe.com/output/1413051

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Copyright Statement
NOTICE: this is the author’s version of a work that was accepted for publication in Research in International Business and Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Research in International Business and Finance, 35, September 2015, 10.1016/j.ribaf.2015.03.008.