Value Creation In Continuous M&A From The Persoective Of Resource-based View

With the increasing international status and market influence of developing countries,more and more enterprises of emerging economies aim at overseas markets and seek international development.Due to the significant gap between enterprises in emerging economies such as China and developed economies in terms of technology,brand and R&D capability,in order to accelerate the pace of international development,many Chinese enterprises acquire overseas strategic resources through cross-border mergers and acquisitions,internalize their own competitive advantages through integration and absorption of merger and acquisition resources,and then realize value innovation.It provides solid technical support and market development space for enterprises’ international development,so as to bring huge economies of scale and synergy effect for enterprises.However,the existing researches mainly focus on the single transnational M&A behavior of enterprises,and few literatures pay attention to the relationship between continuous transnational M&A and value creation.As a strategic choice for the development of enterprises’ internationalization,continuous transnational M&A needs in-depth study to better understand the relationship between continuous transnational M&A behavior and value creation of enterprises.Based on this,this paper takes Geely Group as a case study to explore how Chinese enterprises achieve enterprise value creation through continuous cross-border mergers and acquisitions.Based on the resource-based view theory,this paper systematically reviews the literature related to transnational M&A and value creation of enterprises,and based on the three principles of theoretical sampling,typicality and data availability.Geely’s acquisition of DSI Company of Australia,Geely’s acquisition of Volvo,Geely’s acquisition of London Taxi Company and Geely’s acquisition of Proton Automobile and Luters Shares were selected as research and analysis objects.In addition,the method of root theory was used to conduct open coding,spindle coding and selective coding of case data to explore the value creation in the continuous transnational mergers and acquisitions of enterprises in emerging economies.The findings are as follows: first,the resource accumulation process of enterprises in emerging economies consists of three stages,namely,the resource acquisition stage,the resource integration stage and the resource absorption stage;Second,in order to internalize resource absorption into the core competitiveness of enterprises,so as to realize value innovation,the value realization mode of enterprises in emerging economies is mainly completed through strategic docking and collaborative development.Strategic docking mainly includes market link,technology link and supply chain link,while collaborative development mainly includes integration mechanism and R&D collaboration.On this basis,this paper establishes the theoretical mechanism model of value creation in Geely Group’s continuous mergers and acquisitions,which suggests that enterprises should pay attention to the prevention of merger risks,and strengthen the cultivation of their own resources and capabilities,so as to better connect with the high quality resources of the merged enterprises,so as to generate huge synergistic effect with the merged enterprises.The theoretical contribution of this paper is mainly made in two aspects.First,the resource-based perspective is introduced to explore the concrete realization process of value creation in continuous M&A,which provides a new theoretical perspective to explain the internal connection mechanism between continuous cross-border M&A and value creation.Second,it reveals the specific process of how enterprises in emerging economies realize value creation through resource accumulation after successive cross-border mergers and acquisitions,and identifies three stages of resource accumulation and two ways of value realization.From the perspective of practical significance,this paper has important implications for enterprises in China and other emerging economies to realize value creation through continuous cross-border mergers and acquisitions.