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Does Chinese Investment into Europe Facilitate Strategic Asset Growth in the Chinese Parent Company? The Role of Entry Mode

Author

Listed:
  • John Anderson

    (Management Department, Wilson College of Business, University of Northern Iowa, Cedar Falls, IA 50613, USA)

  • Dylan Sutherland

    (Management Department, Business School, Durham University, Durham DH1 3LB, UK)

  • Sean Severe

    (Department of Economics and Finance, Zimpleman College of Business, Drake University, Des Moines, IA 50311, USA)

Abstract

Strategic asset seeking foreign direct investment has undergone tremendous growth over the past decade. This paper first attempts to evaluate the location choice of such investments in Europe. We find that Chinese companies target strategic assets in Europe. The paper then moves to understand the efficacy of these investments in terms of the creation of strategic assets in the Chinese parent company. Our results show the intangible assets of Chinese domestic parent firms significantly increase in the wake of their investments. For greenfield investments, there is a longer time-lag in creation of intangible strategic assets than for acquisitions. However, greenfield investments result in a larger increase in intangible asset creation than acquisition investments.

Suggested Citation

  • John Anderson & Dylan Sutherland & Sean Severe, 2024. "Does Chinese Investment into Europe Facilitate Strategic Asset Growth in the Chinese Parent Company? The Role of Entry Mode," Economies, MDPI, vol. 12(3), pages 1-16, February.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:3:p:56-:d:1345742
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    References listed on IDEAS

    as
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