The one challenge that affects both Indian and Chinese acquisitions is the integration that happens during the post-acquisition phase. Two options are available for them. They could take the “high road” to acquisitions, in which they allow acquired companies to retain autonomy, keep the top management intact, and then gradually encourage interaction between the two sides. Or they could take the “low road” where they could quickly impose their systems and rules on acquired companies. Currently, acquirers from India and China have chosen the “high road”, and this reflects their lack of international management experience and capabilities.
- What are the advantages of international M&As compared to other equity-based foreignmarket
entry modes (such as greenfield ventures or joint ventures)?
- Why have M&As emerged as the primary mode of foreign market entry for Chinese and Indian MNCs?
- From an institution-based and resource-based view, what are the similarities and differences between Chinese and Indian multinational acquirers?
- From an institution-based and resource-based view, why do you believe Indian
multinational acquirers are more successful than their Chinese counterparts?