Isomorphic or not?: Examining cross-border mergers and acquisitions by Chinese firms, 1985-2006

摘要

Purpose – The purpose of this paper is to examine whether isomorphism and mimetic, coercive, and normative mechanisms apply to cross-border mergers and acquisitions initiated by Chinese firms. Unlike prior studies, the paper aims to identify multiple bases for imitation of firm strategy and verify: whether the degree of conformity in the multiple bases of firm strategy increases over time; and how mimetic, coercive, and normative pressures affect the degree of conformity. Design/methodology/approach – Hypotheses are tested on a sample of 1,004 cross-border mergers and acquisitions (M&As) initiated by 671 Chinese firms from 1985 to 2006. The four decisions for imitation in cross-border M&As are based on: the product relatedness between the acquiring and target firms; the location of the target firm; the ownership structure; and the size of the deal. Findings – The results show that not all decisions on cross-border M&As react to forces of conformity in the same way. Overtime, the overall degree of conformity in cross-border M&As decreases. Factors that significantly affect the degree of conformity include the experiences of failure other firms in the industry, regulatory changes, and membership or entry into the World Trade Organization. Originality/value – This paper re-examines the concept of isomorphism and explores the conditions under which firms from emergent markets conform to others' decisions.