Session 11

Firm Boundaries and Growth

Track A

Date: Saturday, December 15, 2012

 

Time: 11:15 – 12:30

Paper

Room: Meeting Room 230B


Session Chair:

  • Linda Chen, University of Macau

Title: Cross-border Mergers and Acquisitions by Chinese Firms: An Integrative Theoretical Framework

Authors

  • Shijia Zhou, RMIT University
  • Xueli Huang, RMIT University

Abstract: Cross-border mergers & acquisitions (CBMAs) have been increasingly used as the primary internationalization strategy by Chinese Multinational Corporations (MNCs) over the last decade. Much research so far has been devoted to the entry modes and motivations of Chinese outward foreign direct investment (OFDI). There is little research so far on what factors affect the performance of Chinese CBMAs in the post-transaction stage. This paper aims to develop a theoretical framework that integrates several theoretical perspectives on the CBMA performance and considers the moderating role of China’s unique institutions and the resource level of Chinese MNCs.

Title: Fractioned Top Management Team Identity, Mergers & Acquisitions, and Firm Performance: A Study of Chinese Firms

Authors

  • Guoguang Wan, Hong Kong University of Science and Technology
  • Jiatao Li, Hong Kong University of Science and Technology
  • Jieyu Zhou, Hong Kong University of Science and Technology

Abstract: We argue that TMT demographic faultlines generate fractioned team identity, hamper Merger & Acquisition (M&A) activities, and finally harm firm performance. In addition, social visibility of the TMT amplifies the negative relationship between TMT demographic faultlines and M&A activity. Data from 730 Chinese publicly listed firms across 9 years supported the arguments above.

Title: Mergers and Acquisitions for Latecomers in Emerging Economies: The Substitution Effect on Innovation Performance

Authors

  • Yang Yang Zhao, National University of Singapore
  • Poh Kam Wong, National University of Singapore
  • Hang Chang Chieh, National University of Singapore

Abstract: Although the success of Mergers and Acquisitions (M&As) as a means of purchasing synergy has been widely discussed, the other strategic direction towards substitution in M&As has not gained much attention. This paper aims to investigate the substitution effect of M&As among latecomers in emerging economies. We concerned with whether these latecomer acquirers substituted their own competency with the target firms’ competency in order to achieve growth through innovation. We carefully selected and empirically tested the integration factors, including technology distance and relative absorptive capacity, that may drive the substitution success of latecomers. We found that, when an acquiring firm integrates a target firm with a relatively greater knowledge base from a distant technology trajectory, this better illuminates the substitution and promotes innovation.

Title: What Influence the Firm’s Extent of Downsizing During Financial Crisis and How Do They Vary

Authors

  • Xiwei Yi, Rice University

Abstract: Downsizing has been an important part of organizational restructuring. In this study, we identify two mechanisms that will decrease the firm’s extent of downsizing during the financial crisis: strategic flexibility and institutional pressure. In addition, we found, as the firm’s performance decline from the financial crisis enlarges, the mitigating effect of the strategic flexibility will be strengthened but the inhibiting influence on downsizing of the institutional pressure will be weakened.

All Sessions in Track A...

Sat: 09:00 – 09:30
Session 35: Conference Welcome
Sat: 09:30 – 10:45
Session 30: Keynote Plenary Panel: Competing and Cooperating in and for China
Sat: 11:15 – 12:30
Session 4: Competition and Adaptation
Session 11: Firm Boundaries and Growth
Session 19: Global Strategy
Session 26: Entrepreneurship in China
Sat: 13:45 – 15:00
Session 31: Plenary Panel II: Collaborative Strategies in and for China
Sat: 15:30 – 16:45
Session 6: CSR and Sustainable Development
Session 7: Entrepreneurship
Session 9: Executives and Incentives
Session 22: Panel: Innovation
Session 24: Managing Innovation Strategies
Sat: 17:00 – 18:15
Session 5: Corporate Governance
Session 8: Evolution and Ecosystems
Session 10: FDI
Session 12: Innovation Strategy
Session 27: FDI and Institutions
Sun: 09:00 – 10:15
Session 32: Plenary Panel III: Corporate Governance and Executive Leadership in the Age of Globalization
Sun: 10:45 – 12:00
Session 13: Institutions
Session 15: Internationalization II
Session 16: Networks
Session 29: Resources and Capabilities
Sun: 13:45 – 15:00
Session 33: Plenary Panel IV: Strategic Management Research in China - What is Next?
Sun: 15:30 – 16:45
Session 3: Alliances and Cooperation
Session 14: Internationalization I
Session 17: Social Capital
Session 28: Governance, Knowledge, and Cooperation
Sun: 17:00 – 18:00
Session 34: Executives Plenary Panel: Innovation Strategy in China


Strategic Management Society

China