Chinese reverse M&A: the Wu Wei paradigm of post-M&A integration process

Abstract

Purpose

The purpose of this paper is to unpack the black box of post-merger and acquisition (M&A) integration of reverse M&A by Chinese multinational enterprises (MNEs).

Design/methodology/approach

This research adopts multiple cases of Chinese reverse M&A. Data are collected using the approaches of in-depth interviews, storytelling and narratives.

Findings

This research identifies various antecedents underlying Chinese post-M&A integration, such as asymmetries in resources, capabilities, vision and status between Chinese MNEs and acquired firms. The post-M&A integration process of Chinese reverse M&A consists of a top-down effortless integration initiated by Chinese MNEs with both benefits and problems, and a bottom-up reverse integration conducted by acquired firms.

Originality/value

By linking the pre-M&A phase and the post-M&A phase, this research builds a new model of post-M&A integration of Chinese reverse M&A from an indigenous Wu Wei paradigm. The new model counterpoises extant literature, shifting from the task and efficiency-focussed view to the people and harmony-focussed view.

Citation

Sun, Z. (2018), "Chinese reverse M&A: the Wu Wei paradigm of post-M&A integration process", Chinese Management Studies, Vol. 12 No. 4, pp. 774-794. https://doi.org/10.1108/CMS-12-2017-0338