Publication Type

Journal Article

Version

submittedVersion

Publication Date

9-2014

Abstract

Private equity is impacting global economies and competitive landscapes of multinational enterprises (MNEs). In this pioneer research, we first find an important new pattern of globally interfirm connections: the inward private equity investment likes to promote Chinese firms’ outward venture, or an inward-outward linkage. Under this inward-outward linkage, after received investment from private equity, Chinese emerging MNEs are likely to restructure board, rebuild the top management team, reconfiguring resource, reframe the industry structure and alter competitive dynamics, thus, modify their strategies in outward ventures, such as accelerating the internationalization speed, locating more outward ventures in developed economies, and engaging complex entry modes, especially cross-border M&As. We called the emergence of this new species of MNEs as a “morphing” metaphor, with in-depth seven case studies, including Lenovo, Zoomlion, Geely, Alibaba.com, Huawei, NVC lighting, and BYD.

Keywords

Private equity, Internationalization, Linkage strategy, Organizational form

Discipline

Corporate Finance

Research Areas

Finance

Publication

Thunderbird International Business Review

Volume

56

Issue

5

First Page

421

Last Page

438

ISSN

1096-4762

Identifier

10.1002/tie.21633

Publisher

Wiley: No OnlineOpen

Additional URL

https://doi.org.10/1002/tie.21633

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