Subsidiary capability upgrading under emerging market acquirers

Shaowei He; Zaheer Khan; Oded Shenkar

doi:10.1016/j.jwb.2017.11.006

Subsidiary capability upgrading under emerging market acquirers

Shaowei He^*, Zaheer Khan, Oded Shenkar

^*Corresponding author for this work

Business Management

Research output: Contribution to journal › Article › peer-review

56 Citations (Scopus)

9 Downloads (Pure)

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.

Original language	English
Pages (from-to)	248-262
Number of pages	15
Journal	Journal of World Business
Volume	53
Issue number	2
Early online date	7 Dec 2017
DOIs	https://doi.org/10.1016/j.jwb.2017.11.006
Publication status	Published - Feb 2018

Bibliographical note

We are indebted to the editor’s constructive guidance and three anonymous insightful comments which helped to greatly improve the paper. We are grateful to the interviewees for sharing their time and insights with us. The research was funded by the Leverhulme/British Academy Small Research Grant (Ref: SG142848).

Keywords

Acquisition
China
Emerging economy multinational enterprises
Learning
Subsidiary
Upgrading

Access to Document

10.1016/j.jwb.2017.11.006Licence: CC BY

He_et_al_subsiduary_capability_journal_of_world_of_business-vor
© 2017 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/BY/4.0/).T
Final published version, 515 KBLicence: CC BY

Cite this

@article{ebfb5c7869454479b42d0c35ede8cd68,

title = "Subsidiary capability upgrading under emerging market acquirers",

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{\textquoteright} complementary assets, their GVC lead firm positions and the unique power relationship between the acquirer and acquired firms, which enable the EMNEs to {\textquoteleft}impel{\textquoteright} upgrading and encourage {\textquoteleft}co-learning{\textquoteright} in their acquired subsidiaries. The contributions to the literature on EMNEs, global value chains, and organizational learning are outlined and discussed.",

keywords = "Acquisition, China, Emerging economy multinational enterprises, Learning, Subsidiary, Upgrading",

author = "Shaowei He and Zaheer Khan and Oded Shenkar",

note = "We are indebted to the editor{\textquoteright}s constructive guidance and three anonymous insightful comments which helped to greatly improve the paper. We are grateful to the interviewees for sharing their time and insights with us. The research was funded by the Leverhulme/British Academy Small Research Grant (Ref: SG142848). ",

year = "2018",

month = feb,

doi = "10.1016/j.jwb.2017.11.006",

language = "English",

volume = "53",

pages = "248--262",

journal = "Journal of World Business",

issn = "1090-9516",

publisher = "Elsevier Inc.",

number = "2",

}

TY - JOUR

T1 - Subsidiary capability upgrading under emerging market acquirers

AU - He, Shaowei

AU - Khan, Zaheer

AU - Shenkar, Oded

N1 - We are indebted to the editor’s constructive guidance and three anonymous insightful comments which helped to greatly improve the paper. We are grateful to the interviewees for sharing their time and insights with us. The research was funded by the Leverhulme/British Academy Small Research Grant (Ref: SG142848).

PY - 2018/2

Y1 - 2018/2

N2 - 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.

AB - 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.

KW - Acquisition

KW - China

KW - Emerging economy multinational enterprises

KW - Learning

KW - Subsidiary

KW - Upgrading

UR - http://www.scopus.com/inward/record.url?scp=85041670674&partnerID=8YFLogxK

U2 - 10.1016/j.jwb.2017.11.006

DO - 10.1016/j.jwb.2017.11.006

M3 - Article

AN - SCOPUS:85041670674

SN - 1090-9516

VL - 53

SP - 248

EP - 262

JO - Journal of World Business

JF - Journal of World Business

IS - 2

ER -

Subsidiary capability upgrading under emerging market acquirers

Abstract

Bibliographical note

Keywords

Access to Document

Other files and links

Fingerprint

Zaheer Khan

Cite this

Subsidiary capability upgrading under emerging market acquirers

Abstract

Bibliographical note

Keywords

Access to Document

Other files and links

Fingerprint

Profiles

Zaheer Khan

Cite this