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2022

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06

[Paper Express] Resource Dependence, Institutional Logic and Post-integration of Cross-border Mergers and Acquisitions


Abstract:This paper focuses on the research question of how emerging market enterprises (Emerging Multinational Enterprises, referred to as EMNEs) choose institutional logic to achieve the improvement of integrated performance under the condition of asymmetric resource dependence. Through in-depth analysis of the vertical case of Geely's acquisition of Volvo, this paper finds that:(1) After EMNEs acquired enterprises in developed countries, resource dependence changed dynamically from high dependence asymmetry to light dependence asymmetry, and then to high joint dependence. (2) After EMNEs mergers and acquisitions of enterprises in developed countries, different resource dependence states affect the choice of different institutional logics (foreign-funded enterprise system logic, private enterprise system logic and mixed system logic). (3)EMNEs can make full use of the advantages of different institutional logic to achieve the strategic objectives of cross-border mergers and acquisitions.

 

Key words:emerging market firms; cross-border M & A; resource dependence; institutional logic; integration performance

 

Abstract:This study tends to answer the question “How do merging multinational enterprises(EMNEs) choose appropriate institutional logics to achieve the improvement of integration under the situation of dependence asymmetry” Based on the longitudinal, qualitative analysis of Geely-Volvo deal, we find that the state of resource dependence is continuously changing, from high dependence asymmetry to low dependence asymmetry, and to high joint dependence. Our study sheds light on how resource dependence influence the choice of institutional logics among foreign logic, private logic and hybrid logics. We also find that EMNEs can make good use of different institutional logics to achieve strategic goals.

 

Key words:emerging multinational enterprises; cross-border M&As; resource dependence; institutional logics; post-acquisition integration performance

 

Author: Du Jian, Zheng Qiuxia, Ding Sa, Guo Bin

Author: School of Management, Zhejiang University

International Business School, Southwestern University of Finance and Economics

The full text has been published in Scientific Research, Issue 3, 2021.

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