Dynamics of Chinese emerging multinationals in cross-border mergers and acquisitions

Purpose - China's emerging multinationals (CEMs) have gained attention for their increasing activities in mergers and acquisitions (M&As) within the global arena. Harnessing previous studies about the significance of their cultural baggage and an underlying strategic intent in reverse technology transfer through cross-border M&As, the purpose of this paper is to explore the dynamics of CEMs in their process of cross-border M&As through the perspectives of intellectual capital. Design/methodology/approach - Building on an interdisciplinary literature review, a theoretical framework is devised to exemplify such dynamics within a CEM during the course of reverse technology transfer and swift transformation into a global enterprise for technological innovation through M&As. A longitudinal case study is adopted to examine how two technology-based CEMs continue to modify and reconfigure their respective committed intellectual capital resources while undergoing cross-border M&A transactions. Findings - The study suggests the relevance of a conceptual framework and unveils a causal development of dynamic capabilities that is evidenced by resource reconfiguration and post-merger performance. It further reveals a reinforced dynamic capability development process that would enhance reverse technology transfer for domestic rather than overseas market development while pursuing equilibrium of knowledge. Originality/value - This is an original paper that explores the cultural dynamics of CEMs and what influences their intellectual capital development during their cross- border M&As. This paper articulates that CEMs need to create their own unique intellectual capital that contributes constructively to their international operations throughout their post-merger integrations.