The Research On Cross-border M&A Strategy Based On Core Competence

With the development of economic globalization, raise of the cross-border mergers and acquisitions wave, and the global financial crisis, capital's international flow become more and more frequently, more and more companies begin to carry out the international strategy, to build and enhance core competence through cross-border mergers and acquisitions, and to train and enhance the sustainable competitive advantage.Since 2002, the cross-border M&A of Chinese enterprises shows the trend of rapid develop, these companies have accumulated rich experience in carrying out cross-border mergers and acquisitions. In the new competitive environment, Chinese enterprises should think seriously and make great effort to the problem that how Chinese enterprises can actively participate in international competition and integrate into the world economic market to enhance its competitive position of production and management factors in the cross-border M&A, so to enhance its global competitive advantage in value chain and build core competence of enterprises.From the building and enhancing core competence perspective, taking Weichai Power's M&A to Baudouin and China National Offshore Oil Corporation's M&A to PK company for example, and integrating international production theory and cross-border M&A in developing countries into core competence-based cross-border M&A, this paper explore the core competence-based cross-border M&A problem by analyzing the companies' core competitiveness, purpose of cross-border M&A, cross-border M&A mode selection, application of cross-border M&A and integration following it. The paper is divided into seven chapters, the basic idea and main contents are as following:Chapter 1 introduced research background and meaning, as well as research framework.Chapter 2 is the literature review about cross-border M&A theory and core competence theory. Based on the analysis of the current situation of Chinese enterprises'cross-border M&A, this paper raises the problem of cross-border M&A and definite related concept.Chapter 3 analysis the interaction between the core competence and cross-border M&A, with the international production theory and cross-border M&A in developing countries, this paper established the core competence-based cross-border M&A theory, analysis the impact mechanism of cross-border M&A, and explore the cross-border M&A mode selection.Chapter 5 and Chapter 6 take Weichai Power's M&A to Baudouin and China National Offshore Oil Corporation's M&A to PK company for example, analysis the cross-border M&A theory and cross-border M&A strategy's application.Chapter 7 got the conclusion.The theoretical and practical significance are as follows:from the perspective of core competence, not all the companies can upgrade its core competence through cross-border M&A. Before the carry-out of cross-border M&A, the company should make an accurate determination of the resources and capabilities their own first, The focus for the selection of target company and the integration management after cross-border M&A is different for the companies whose competence shape are deferent with shapes of base state, sub-state or mature form of core competence.The paper breaks the tradition that study enterprises' cross-border M&A in developed countries and developing countries respectively, and establish the core competence-based cross-border M&A theory. Besides that, the paper also analyzes the cross-border M&A mode selection and cross-border M&A strategy's application. For the Chinese enterprises that tend to seek for sustainable competitive advantage, build and enhance core competence, this paper do not only has theoretical value, but also has some practical significance.