Control and Ownership Decision in Technology Sourcing Cross-Border M&A on the Resource-Based View and Institution-Based View

Article Preview

Abstract:

Chinese companies have actively expanded overseas. However, more and more companies, such as TCL, have found that technology sourcing cross-border M&A cost too much to threaten their survival, rather than achieving their goals. From reviewing previous literatures, we found that control, not the ownership, is the critical determinant. Control is the result of the bargaining power between the acquirer and the target company. Drawing on resources-based view, transaction cost theory and institutions theory, this paper reviews the influencing factors of bargaining power in the control and ownership, and proposes a model of control and ownership for Chinese enterprises technology sourcing cross-border M&A.

You might also be interested in these eBooks

Info:

Periodical:

Pages:

2583-2588

Citation:

Online since:

September 2013

Export:

Price:

Permissions CCC:

Permissions PLS:

Сopyright:

© 2013 Trans Tech Publications Ltd. All Rights Reserved

Share:

Citation:

[1] Yan, A., Gray, B. Bargaining Power, Management Control, and Performance in United States–Chinese Joint Ventures: A Comparative Case Study, J. Acad Manage J, 37(1994),P. 8–1517.

DOI: 10.5465/256796

Google Scholar

[2] Lecraw, D.J. Bargaining Power, Ownership, and Profitability of Transnational Corporations in Developing Countries, J. J Int Business Stud, 15(1984),P. 27–43.

DOI: 10.1057/palgrave.jibs.8490469

Google Scholar

[3] Pfeffer, J., Slancik, G.R., The External Control of Organizations. Harper and Row, New York (1978).

Google Scholar

[4] Barney, J. Returns to Bidding Firms in Mergers and Acquisitions: Reconsidering the Relatedness Hypothesis., J. Strategic Management Journal, 9(Summer Special Issue)(1988).

DOI: 10.1002/smj.4250090708

Google Scholar

[5] Yang R.L., Yang.Q. J . Specific, Exclusive and Company Institution, Economic Research (2001).

Google Scholar

[6] Lee J, Chen W, Kao C. Bargaining Power and the Trade-Off between the Ownership and Control of International Joint Ventures in China, J. Journal of International Management, 4(1998),P. 353-385.

DOI: 10.1016/s1075-4253(98)00018-0

Google Scholar