Chinese Acquisitions in Europe: Absorptive Capacity and Impacts on Competitive Advantage

Abstract

The number of Chinese acquisitions in Europe is growing rapidly with the primary motivation of accessing advanced technology, knowhow and specialist capabilities. Detailed analysis of case studies shows that Chinese buyers have found ways to increase their absorptive capacity to gain benefits from these acquisitions by adopting post-acquisition integration strategies that focused on preserving and learning about the assets acquired, melding the capabilities acquired with complementary resources and knowledge from China to create new sources of competitive advantage, and by exploiting these new advantages in the China market before expanding into global markets. Implications of theory and practice are drawn.

Keywords

Emerging Markets, Multinationals, Acquisitions, Absorptive Capacity

Citation

Williamson, Peter J., “Chinese Acquisitions in Europe: Absorptive Capacity and Impacts on Competitive Advantage”, International Relations, Volume 13, No. 49 (2016), pp. 61-83.

Affiliations

• Peter J. WILLIAMSON, Professor of International Management, Judge Business School, University of Cambridge, UK