Entry mode choice and M&A performance : the internationalization of firms in less developed countries

進入模式選擇和併購績效 : 非發達國家企業國際化

Student thesis: Doctoral Thesis

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  • Yuanyuan ZHANG

Related Research Unit(s)


Awarding Institution
Award date2 Oct 2015


I conduct two empirical studies of internationalization of firms from less developed countries from entry mode choice and M&A performance perspectives. The two studies examine the two phases of Chinese firms. Essay one focus on firms’ entry choice before entering into a foreign market. Essay two examines the firms’ performance after going abroad. The first study integrates transaction cost economics and institutional theory to propose a contingency model of multinational enterprises’ ownership control designs. I posit that asset specificity and complementarity influence the design of ownership control, which is further affected by the specific institutional environment. Furthermore, I argue that regulatory distance and normative distance display differentiating moderations on the main effects. Regulatory distance is found to strengthen the positive effect of asset specificity on ownership control, while normative distance enhances the negative effect of asset complementarity on ownership control. In second study, I propose to substitute “cultural distance” with “cultural friction”. Because compared to cultural distance, cultural friction focuses more on conflict occurring in the process of acquisition. Moreover, when there is cultural friction in the acquisition process, the negative effects of such friction on post-acquisition performance worsen to the extent that TMT educational background is diversified. Political ties with local government were also found to have a partially negative effect on the relationship between two collaborating parties.

    Research areas

  • Developing countries, Consolidation and merger of corporations, International business enterprises, Developing countries.