The internationalization of Chinese industries: Overseas acquisition activity in Chinese mining and manufacturing industries

• DOI: 10.1057/abm.2014.1
• Publication Date: 2014-02-19T10:46:34Z
• Authors: Chaohong Zhou; Arjen van Wittelo...; Jianhong Zhang
• Keywords: Manufacturing; Asian culture; International business

This study examines how industrial characteristics at home affect Chinese overseas acquisition activities from an industry-level resource-based view. Analyzing data on 512 Chinese overseas acquisition deals across 36 industries in 60 countries over 2003–2008, we find that: (1) firms in industries with higher levels of technology intensity are more likely to acquire foreign firms, while firms in labor-intensive industries are more likely to stay at home; and (2) the relationship between technology gap and international acquisition activity is hill-shaped. This implies that overseas acquisition is particularly attractive for developing Asian firms in industries with high technology intensity, and a medium-sized technology gap is essential for identifying potential targets.