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Subsidiary capability upgrading under emerging market acquirers

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  • He, Shaowei
  • Khan, Zaheer
  • Shenkar, Oded

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 enable 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.

Suggested Citation

  • He, Shaowei & Khan, Zaheer & Shenkar, Oded, 2018. "Subsidiary capability upgrading under emerging market acquirers," Journal of World Business, Elsevier, vol. 53(2), pages 248-262.
    • Handle: RePEc:eee:worbus:v:53:y:2018:i:2:p:248-262
    DOI: 10.1016/j.jwb.2017.11.006
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