Download Bucharest-Dec9-Presentazione EIBA panel COST

37th EIBA conference , Dec. 8-10, Bucharest
COST Panel Session on Emerging country
multinationals. Challenges to data, companies,
management and policy
Multinational firms from emerging countries
and the impact on advanced economies:
Evidence from the “COST Action”
Stefano Elia, Politecnico di Milano (Italy)
Filip De Beule, Katholieke Universiteit of Leuven (Belgium)
WG3 Research Activity: an overview
• WG3 research activity can be grouped into
five main subgroups (SG):
– SG 1: Focus of Southern Multinational and their
impact on Europe (Micro or macro approach)
– SG 2: Counterfactual analysis: comparison
between Southern and Advanced Multinational
(Micro or Macro approach)
– SG 3: Relationship between strategies and impact
– SG 4: Relationship between policies and impact
Topics
• Acquisitions
• Related/unrelated deals
• Knowledge seeking
• Ownership selection
• Impact
• Price setting
• Performance enhancing
• Entrepreneurship
• Diaspora
• Policy
Exploitation and exploration
Analysis of 808 acquisitions undertaken by BRIC in EU, USA and JP
between 1999 and 2008
Emerging market firms’ international experience and home-country
characteristics are key determinants of acquisition behavior
Better CSAs, broader and diverse sources of knowledge positively
influence absorptive capacity
 More explorative (unrelated) acquisitions
Acquisition experience in developed markets
 More exploitative (i.e. related) acquisitions
(Rabbiosi, Elia & Bertoni, MIR, forthcoming)
Knowledge upgrading
Analysis of 104 acquisitions undertaken by BRIC in EU, USA and JP
between 1999 and 2008
The higher the country-specific disadvantages, the higher the probability
to undertake knowledge-upgrading investments (i.e. acquisitions
involving target firms with higher intangible assets than the acquiring
firms).
However, as regards investments in HT industries, the opposite is true:
the higher the country specific advantages, the higher the probability
to undertake knowledge-upgrading investments, because HT
industries require stronger initial absorption capabilities
(Elia and Santangelo)
Ownership selection
Analysis on 820 acquisitions from emerging and advanced countries
occurred in Italy from 2001 to 2010
Emerging MNCs, compared to Advanced MNCs, prefer partial rather
than full acquisitions as entry strategy
Partial acquisitions allow to compensate for emerging MNCs’ larger
liability of foreignness and competitive disadvantages through
absorption of knowledge from the partner
(Elia and Piscitello)
Topics
• Acquisitions
• Related/unrelated deals
• Knowledge seeking
• Ownership selection
• Impact
• Price setting
• Performance enhancing
• Entrepreneurship
• Diaspora
• Policy
Price setting
Analysis on acquisitions undertaken by emerging and advanced
countries in Europe from 1996 to the present
Are emerging market firms paying more for their targets than developed
market firms?
Are companies more valuable for emerging country multinationals?
What is the role of technological assets?
What about related upstream and downstream industries?
(De Beule and Somers)
Performance enhancing
Analysis on 95 acquisitions undertaken by BRIC in EU and USA from
1999 to 2008
The resources of BRIC MNCs have a significant positive impact on the
performance of target firms located in EU & USA mainly when the
acquiring firm can rely on previous acquisition experience in
advanced countries
Previous acquisition experience in advanced countries allow indeed
accumulating knowledge and capabilities to create synergies and
complementarities between labor-intensive/cost-saving resources of
EMNCs and capital/R&D intensive resource of target firms in
advanced countries
(Buckley, Elia and Kafouros)
Entrepreneurship
Case study on Embraer and on other Brazilian Multinationals in Portugal
and Europe
Brazilian Investments in Portugal are likely to improve economic
dynamism in countries/regions and in some specific industries which
lack of “national champions” (e.g. Embraer in aerospace)
Firms in developed countries live in a zoo, while firms from emerging
economies are used to the jungle!
(Carlos Cunha)
Diaspora
Board member and top management in Chinese and Indian firms in
Europe.
Difference between investment from industrial groups and entrepreneurs.
No outside board members and professional managers in
entrepreneurial firms
Importance of diaspora in co-location of entrepreneurial firms.
(Zhang and Van Den Bulcke)
Policy impact
Case studies on Chinese firms acquiring Icelandic lands: Beijing
Zhongkun Investment Group Co. Ltd. and National Bluestar Group
Co. Ltd company
Only the first firm was able to accomplish its deal since it was an indirect
acquisition (through a Norwegian Subsidiary), while the second firm
was stopped by national government due to a law that prevent nonEEA citizens from buying land in Iceland.
Large debate in Icelandic public opinion: should the Icelandic
Government change its attitude towards non-EEA (such as Chinese)
investors?
(Hannibalsson)
Thank you for your attention
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