| More Chinese companies are using cross-border merger and acquisitions (CBM&As) to fulfil strategic goals of the present and future. So much so that this relatively recent trend by Chinese MNCs has been classified as a ’merger wave’. However, to date there has been a severe lack of research on the reasons for such aggressive CBM&A by Chinese MNCs, let alone Chinese internet MNCs (CIMNCs) such as Alibaba. This paper intends to address this issue by looking at the recent merger wave; introducing theories of M&A, then further, with specific reference to CIMNCs, we look at seven key drivers of CBM&A from an organisational and macroeconomic level, applying relevant theory, research as well as practical examples of Alibaba’s CBM&A activity during the period to draw conclusions about each of the CBM&A drivers raised.The seven key drivers, of which five are organisational and two macroeconomic, are based on a the Neoclassical Theory utilising UNCTAD’s World Investment Report as discussed at the United Nations Conference on Trade and Development (UNCTAD,1998); as well as the 1999-2014 World Development Reports by UNCTAD with focus on the years 2000 and 2014, within which the factors were discussed in most detail and data was most relevant; Mathews’pull factor theory (Mathews,2006); Deng’s article ’Why do Chinese firms tend to acquire strategic assets in international expansion?’(Deng,2009); and Rui & Yip’s argument of strategic intent by Chinese firms when pursuing CBM&A (Rui et al,2008).I draw on the case study one of the largest and most recognised CIMNC-Alibaba. By analysing the current merger wave then further researching this specific industry we hope to shed light on the true reasoning for such an aggressive stance by CIMNCs in recent years. This study is of importance for those looking to draw implications from other emerging market online firms’ actions, the future shape of the world’s online environment and also to address concerns held for such aggressive CBM&A activity by CIMNCs. |
PDF Full Text Request