Purpose

Many multinational corporations that originate from emerging economies (emerging market multinational corporations (EMNCs)) opt for acquiring a target firm in a developed market to expediently upgrade their strategic capabilities. To successfully achieve their strategic goals in the developed markets, EMNCs may use market actions and nonmarket actions to mitigate the potential risk derived from the national political differences between their home emerging economy and host developed economy. This paper aims to extend the legitimacy-based view of political risk to study the influence of political animosity – defined as misalignment of the host-home countries’ national interests – on the EMNCs’ market and nonmarket strategy in a developed market.

Design/methodology/approach

In this paper, we examine all EMNCs that made cross-border acquisitions of the USA targets from 2005 to 2011. The final sample consists of 252 acquisitions originating from 25 emerging markets. This paper used Tobit regression analysis to test the direct and moderating hypotheses.

Findings

Facing a high level of political animosity between their home country and the host developed economy, EMNCs use a market strategy by acquiring less ownership stake in the developed market, as well as engage in a nonmarket strategy by increasing lobbying activities. In addition, because of the heightened legitimacy concerns of developed market shareholders, cross-listed EMNCs have a greater tendency than non-cross-listed EMNCs to improve their legitimacy through their market and nonmarket strategy.

Originality/value

The current paper sheds light on EMNCs’ international strategy in developed markets by examining both market and nonmarket actions. EMNCs are shown to be strongly motivated to engage in acquisitions in developed markets so they can acquire invaluable strategic resources, such as brands and distribution channels, to compete with the developed market multinationals. A sophisticated ownership strategy and corporate political activities are invaluable for EMNCs to catch up with developed market multinationals.

中文翻译：

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跨国收购中的政治敌意：发达市场中新兴市场公司的市场和非市场战略

目的

许多来自新兴经济体的跨国公司（新兴市场跨国公司（EMNCs））选择收购发达市场的目标公司，以方便地提升其战略能力。为了在发达市场成功实现其战略目标，EMNC 可能会使用市场行为和非市场行为来减轻其本国新兴经济体与东道国发达经济体之间的国家政治差异所带来的潜在风险。本文旨在扩展基于合法性的政治风险观点，以研究政治敌意——定义为东道国国家利益的错位——对发达市场中新兴市场国家市场和非市场战略的影响。

设计/方法/方法

在本文中，我们考察了 2005 年至 2011 年间对美国目标进行跨境收购的所有 EMNC。最终样本包括来自 25 个新兴市场的 252 次收购。本文采用Tobit回归分析对直接假设和调节假设进行检验。

发现

面对本国与东道国发达经济体之间的高度政治敌意，EMNC 使用市场战略，通过在发达市场获得较少的所有权股份，并通过增加游说活动参与非市场战略。此外，由于发达市场股东对合法性的担忧加剧，交叉上市的 EMNC 比非交叉上市的 EMNC 更倾向于通过市场和非市场战略提高其合法性。

原创性/价值

本论文通过研究市场和非市场行为，阐明了 EMNC 在发达市场的国际战略。EMNC 被证明有强烈的动机在发达市场进行收购，以便他们能够获得宝贵的战略资源，例如品牌和分销渠道，以与发达市场的跨国公司竞争。复杂的所有权战略和公司政治活动对于 EMNC 赶上发达市场跨国公司的价值是无价的。