The Role Of Cross-border Mergers And Acquisitions In The Internationalization Of The Firm

As a main way for the enterprises to enlarge its scale and expand rapidly, the M&A has been adopted by more and more companies. Since 1990's, there has been the fifth M&A upsurge in the world economy. After China enters into WTO, all the domestic companies will face to the competition from the oversea companies, it requires the domestic companies improve its competition by M&A. Now many huge domestic companies, such as TCL, Lenovo, BOE and Shanghai Automotive Industry Corporation (SAIC) etc, have been worked on M&A. In this economic environment, this paper purposes to contact overseas' M&A to enterprise internationalization by competitive advantages. In this paper, the author demonstrates that overseas' M&A can improve enterprise's core competence, and then accelerate the step of enterprise's internationalization. At first, author describes the effect factors and action mechanism when overseas' M&A improves enterprise's core competence; then based on the other research of enterprise's abilities and internationalization, the author constructs enterprise's internationalization cask model. In the frame of this model, the paper strongly demonstrates that improvement of ability can accelerate the step of enterprise's internationalization. After that, author analysis some special cases of Chinese enterprise overseas' M&A. At last, the author gets the conclusion: if fulfils some conditions of enterprise's internationalization cask model, overseas' M&A can strongly accelerate the step of enterprise's internationalization by improving companies' competitive abilities.