Similarity in Cross-border Mergers and Acquisitions: Imitation, Uncertainty and Experience among Chinese Firms, 1985-2006

摘要

In the search for determinants affecting the decision making process of cross-border mergers and acquisitions (CBMAs), we draw on the mimetic isomorphism argument to examine (1) whether firms from emerging markets imitate each other and become similar on multiple decisions of CBMA; and (2) what factors affect the strength of mimetic isomorphism. With 1580 CBMAs initiated by 937 Chinese firms from 1985 to 2006, we found that mimetic isomorphism in CBMAs is partially supported by Chinese firms. Specifically, the degree of similarity in two CBMA decisions (the product relatedness and the location of target firms) increases when the number of completed deals initiated by others at a prior time increases and when firms can tell what the most popular decision choice is. We found that not all CBMA decisions react to the force of imitation in the same way. Finally, the force of mimetic isomorphism is strengthened by environmental instability but weakened by firms' own experience. This study provides implications for theory and research on CBMA and imitation as well as multinational firms from emerging economies.