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Aggressive acquirers, laidback owners? Organisational dynamics of subsidiary integration in Chinese MNCs

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  • Yu Zheng

    (Royal Holloway, University of London)

Abstract

Why do Chinese MNCs appear to be ‘aggressive’ in cross-border acquisition (Zeng and Williamson, 2003), yet ‘laidback’ (Liu and Woywode, 2013) in consolidating subsidiaries in developed economies? This paper addresses this question by examining the power dynamics underpinning subsidiary integration and by bridging two relatively disconnected streams of literature in international business: subsidiary integration of emerging-market MNCs in advanced economies, and power relations inside MNCs. An exploratory case study is outlined to examine a Chinese MNC’s attempt to consolidate a newly acquired Canadian subsidiary. The findings suggest that developing process-based power is critical to subsidiary integration for Chinese MNCs.

Suggested Citation

  • Yu Zheng, 2016. "Aggressive acquirers, laidback owners? Organisational dynamics of subsidiary integration in Chinese MNCs," Asian Business & Management, Palgrave Macmillan, vol. 15(4), pages 317-342, September.
    • Handle: RePEc:pal:abaman:v:15:y:2016:i:4:d:10.1057_s41291-016-0004-0
    DOI: 10.1057/s41291-016-0004-0
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    2. Timon Immanuel Haasis & Ingo Liefner & Ritam Garg, 2018. "The organization of knowledge transfer in the context of Chinese cross-border acquisitions in developed economies," Asian Business & Management, Palgrave Macmillan, vol. 17(4), pages 286-311, September.

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