Morphing: The Linkage of Inward Private Equity and Outward Ventures

Thunderbird International Business Review, 2013, Forthcoming

Presented in 2nd Copenhagen Conference on Emerging Multinationals(Copenhagen Business School), LSE Alternative Investment Research Conference (London), 2010

Asian Finance Association Online Workshop on "VC/PE in the Asia Pacific Region"

35 Pages Posted: 3 Oct 2010 Last revised: 12 Mar 2013

See all articles by Sunny Li Sun

Sunny Li Sun

University of Massachusetts Lowell

Hao Liang

Singapore Management University - Lee Kong Chian School of Business; European Corporate Governance Institute (ECGI)

Date Written: March 11, 2013

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

Suggested Citation

Sun, Sunny Li and Liang, Hao, Morphing: The Linkage of Inward Private Equity and Outward Ventures (March 11, 2013). Thunderbird International Business Review, 2013, Forthcoming, Presented in 2nd Copenhagen Conference on Emerging Multinationals(Copenhagen Business School), LSE Alternative Investment Research Conference (London), 2010, Asian Finance Association Online Workshop on "VC/PE in the Asia Pacific Region", Available at SSRN: https://ssrn.com/abstract=1685477 or http://dx.doi.org/10.2139/ssrn.1685477

Sunny Li Sun

University of Massachusetts Lowell ( email )

72 University Ave.
Lowell, MA 01854
United States

HOME PAGE: http://https://scholar.google.com/citations?user=c-Covi4AAAAJ&hl

Hao Liang (Contact Author)

Singapore Management University - Lee Kong Chian School of Business ( email )

469 Bukit Timah Road
Singapore 912409
Singapore

HOME PAGE: http://business.smu.edu.sg/faculty/profile/130396/LIANG-Hao

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

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