Faculty Publications

An Event Study Of Home And Host Country Patent Generation In Chinese MNEs Undertaking Strategic Asset Acquisitions In Developed Markets

Document Type

Article

Keywords

Chinese outward foreign direct investment, Event study, Innovation, Strategic asset seeking

Journal/Book/Conference Title

International Business Review

Volume

24

Issue

5

First Page

758

Last Page

771

Abstract

We use event study methodologies to analyze trends in home and host country patent applications of Chinese MNEs that acquire strategic asset-rich developed market businesses. Our results show the domestic market patents of Chinese MNEs rise significantly in the wake of such acquisitions, while those of the acquired target do not significantly change. These results hold for different ownership classes. In light of current theoretical debates, we discuss the possible motivations for such acquisitions by Chinese MNEs and the reasons for the observed patenting performance in both domestic and target businesses. We argue acquisition of codified strategic assets (such as patents) for the purpose of imitation and exploitation in the domestic Chinese market context provides one plausible explanation for our results.

Department

Department of Management

Original Publication Date

10-1-2015

DOI of published version

10.1016/j.ibusrev.2015.01.007

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