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The Emergence of Contemporary Chinese Enterprise: The Heterogeneity of National Culture, Corporate Controls and Integration Approaches in M&As
Author(s) -
Chatzkel Jay,
Ng Artie W.
Publication year - 2013
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.21572
Subject(s) - corporate governance , relation (database) , organizational culture , mergers and acquisitions , capital (architecture) , business , economic geography , political science , management , economics , geography , archaeology , database , computer science , finance
Abstract This article aims to explore the emergence of the three main types of contemporary Chinese enterprises (CCEs), 1 the heterogeneity of their underlying cultures beyond Confucianism, their adopted corporate controls and their implications for mergers and acquisitions (M&As). An interdisciplinary literature review is provided to investigate the interrelated concepts between ancient Chinese wisdom, traditional Chinese culture as embedded in its national culture, and dissimilar developments in the corporate culture of CCEs. The implications for corporate controls in relation to postmerger integration approaches are also examined. Theoretical analyses and propositions are then made regarding the reinforcing cultures, adopted corporate controls and the integration approaches among the three main types of CCEs in their M&A initiatives. Through a multiple‐case study of three proposed clusters of CCEs with distinct ownership structures, this article reveals the characteristics of these respective clusters as they seek growth and development through regional and international M&As. The heterogeneity among the clusters is reflected in their variations in human capital, corporate governance, and controls, as well as the efficacy of their M&A activities. © 2013 Wiley Periodicals, Inc.