Francesca Spigarelli

Chinese overseas M&A: overcoming cultural and organisational divides

This article contributes to the existing knowledge on the difficulties and critical aspects of the post-acquisition phase of an emerging market multinational. To establish the context, a literature review on multinational companies from emerging countries, and specifically on the internationalisation initiatives of Chinese companies, is provided, along with a framework to analyse cultural and management-related differences related to mergers and acquisitions (M&As). This review and framework is followed by a case study of a Chinese M&A in Italy. The case illustrates how Chinese companies use Italy to access Western markets (and strategic logistical services), as well as a wide range of distinct skills/intangible assets, such as brands, know-how and technology, particularly in the manufacturing industries. The findings suggest that while superficial product-portfolio and cost benefits can accrue due to the acquisition, cultural and administrative differences and lack of synergies can prevent the acquirer from fully integrating the intangible assets, particularly human resource talent, of the acquired firm.

The determinants of location choice: Chinese foreign direct investments in the European renewable energy sector

Purpose – The purpose of this paper is to analyze the role of institutional distance and host country attractiveness in location determinants of Chinese Foreign investments in EU in the renewable energy sector, taking into account bilateral political and economic relations. Design/methodology/approach – A firm-level Ministry of Commerce (MofCom) database of greenfield and non-greenfield Chinese investments abroad is used. A six fixed-effects logit analysis is performed. Findings – Chinese firms tend to invest in EU countries with reduced rule of law; market affluence is an attraction factor for them, but they do not seem to be human capital asset-seekers. Countries with politically stable environment are most attractive to sales/services subsidiaries; while countries with good control of corruption, low trade barriers and encouraging foreign ownership are most attractive to manufacturing subsidiaries. A large market is the most attractive factor for R & D subsidiaries, and a rich market is the most attrac...

Chinese Investments in Italy: Is the Wave Arriving?

This paper focuses on the effects of the Go Global policy in Italy. The main type of Chinese investments, their strategic motivations, as well as the role of ethnic networks are analyzed. The phenomenon is still not significant in quantitative terms, but trends are impressive. Italy can provide an access to western markets and strategic logistic services, as well as to a wide array of distinctive skills/intangible assets in manufacturing industries. At the moment, there is a prevalence of greenfield initiatives, but acquisitions are rising sharply. In geographical terms, the locations chosen by Chinese investors favor areas that offer a wealth of distinctive skills (typically, but not only, district areas), but are not limited to industries in which Chinese ethnic groups are involved.

Chinese M & A in Europe: Emerging market multinational in the heavy construction industry

Purpose – This paper aims to examine the global competitiveness of an emerging market multinational (EMM) from China through the case of a major European acquisition, in Italy, in the heavy construction industry. Country- and firm-specific factors are considered. Horizontal integration in this oligopolistic industry changes the industry dynamics, with significant implications for its players. Design/methodology/approach – The paper follows case study methodology and triangulates data through a literature review, an examination of available company data and interviews of key personnel. Firm- and country-specific factors, both advantages and disadvantages, including the business environment in the construction industry, globally and regionally, are analyzed. Findings – The paper identifies several key success factors at the firm level, including the integration of research and development, marketing and sales; the development of extensive communication and trust among the managers of both companies; the exp...

LE MULTINAZIONALI DEI PAESI EMERGENTI: GLI INVESTIMENTI CINESI IN ITALIA

MNEs from emerging countries: Chinese investments in Italy This paper focuses on a recent phenomenon: the Chinese Go global policy, which encourages domestic firms to enter the global competition through active internationalization processes. At present, Chinese investments are still small compared to the world value of outward foreign direct investments, but it is interesting to focus on their trends and skyrocketing growth. The attention is drawn to the Italian case. Italy is still not playing a major role in Chinese companies’ internationalization strategies. Flows and stocks of investments are low and only a small number of companies is investing in Italy. But things are changing quickly. Italy is becoming increasingly interesting for Chinese companies aiming to acquire brands, knowledge and specific competencies, as well as strategic locations to penetrate European markets. The small dimension of the target companies (for acquisitions) encourage Chinese investors to come to Italy. Data on Chinese investments flows, on individual entrepreneurs, as well as on Chinese companies operating in Italy are discussed and analyzed to build a framework to test some preliminary hypotheses and to verify the interest for further research projects. . Keywords: Go global policy; Chinese OFDIs; Chinese MNEs in Italy Parole chiave: Go global; IDE cinesi in Italia; acquisizioni ed investimenti cinesi in Italia. Jel Classification: O5 - F23

Benelli and QJ Compete in the International Motorbike Arena

Marta, the young Chinese Managing Director, was sitting in her office in Pesaro contemplating the purchase of the Italian bike manufacturer Benelli. QJ had purchased Benelli in 2005. After the Chinese beat out the Russians in a bid to acquire the company, QJ was off to a very good start: the local authorities helped to create a welcoming environment, the two production lines were operational, new motorbikes were being projected by skilled engineers, and the new scooters were so attractive!

The feasibility of liquefied biomethane as alternative fuel: a comparison between European and Chinese markets

ABSTRACT Natural gas is considered the alternative fuel that, in the short-medium term, can best substitute conventional fuels, in order to reduce their environmental impact. The purpose of this paper is to outline the feasibility of liquefied natural gas (LNG), especially from biogas (LBG), as vehicle fuel in Europe and in China. Firstly, the analysis presents the difficulty of methane supply in some regions and the need for feasible ways of producing LNG. For this purpose, biogas recovery and its upgrade are presented as an interesting source to produce such alternative vehicle fuel, being also a renewable source with a reduced environmental impact. Secondly, an economic analysis is performed for a specific European country (Italy): it takes into account technical aspects, costs, the foreseen market price for the new fuel and the necessary incentive policy. The latter aspect has been revealed to cover a major role for the feasibility of such projects.

Universities’ third mission and the entrepreneurial university and the challenges they bring to higher education institutions

Purpose - Over the past few decades, higher education institutions (HEIs) have become key players in regional economic development and knowledge transfer, which has led to a third mission for HEIs and the entrepreneurial university. The purpose of this paper is to assess the challenges of HEIs in fulfilling the third mission for economic development and the changing role of being an entrepreneurial university, and the changes that need to be implemented to fulfill this new mission. Design/methodology/approach - The authors have drawn on current literature to examine academic entrepreneurism and the entrepreneurial university, and how universities are fulfilling their third mission. Findings - The findings from our review of the literature demonstrated the varied economic and social benefit of universities conducting external third mission/entrepreneurial activities in the community, as well as how the changing role and expectations of universities to become more entrepreneurial, has not only changed the expectations and role of university administrators, faculty and staff but also the business community which they serve. The review also showed the varied challenges for universities in fulfilling the third mission of economic development. Research limitations/implications - Although ample literature and cases about universities’ third mission of economic development and the new entrepreneurial university (especially with research universities) were available, literature or research was limited on the specific challenges and obstacles faced by administrators, faculty and departments in fulfilling this mission, and few studies recommended changes that needed to be implemented in HEIs to support this new mission. Practical/implications - The paper supports the potential role that HEIs play in implementing economic development in their communities or region. The paper also highlights some of the necessary resources and policy changes that policymakers and university administrators need to implement to reward and recognize faculty in conducting outreach activities as part of the university’s third mission. Originality/value - The findings from this study highlight the challenges and barriers for faculty, staff and HEIs in fulfilling the third mission and becoming an entrepreneurial university.

The Chinese Pharmaceutical Market: Driving Forces and Emerging Trends

Dramatic changes are emerging in the Chinese pharmaceutical market, as a result of new Government policies, new consumer habits and behaviour, growing competition among local and foreign firms. From a demand side perspective, consumptions of pharmaceutical products are booming thanks to a combined effect of economic growth, aging population, urbanization and health system reforms. Key forces shaping the demand are examined in the paper, with a specific attention to health care reforms as well as to new habits and confidence of Chinese people towards the Western medicine. In this regard, import and export trends of products, consumption, and expected evolution of demand are examined. From a supply side perspective, two main trends are highlighted: the increasing and changing interest of foreign investors, and the effort of Chinese pharmaceutical firms to affirm in the national and international market. To better understand the ongoing changes, key players of the markets, as well as trends and motivation of inward foreign direct investments (fdi) to China are examined. At the same time, intellectual property data are considered: main source of patents (foreign vs local firms) and main kind of products protected (raw materials vs basic products vs drugs, as well as Western and Traditional Chinese medicine products).

Universities and smart specialisation strategy: From third mission to sustainable development co-creation

The paper analyses the emerging role of Social Sciences and Humanities (SSH) universities in contemporary society via third- and fourth-mission activities. In particular, the paper investigates the potential contributions that SSH universities can offer in developing and enhancing capacities, supporting the changing conception of innovation coherently through a Smart Specialisation Strategy (S3) approach.,The case study presents multiple third- and fourth-mission activities carried out by the University of Macerata (Italy). The activities are framed according to the roles universities could have in supporting S3.,Within third- and fourth-mission activities, SSH universities can play different and broader roles (generative, absorptive, collaborative and leadership), which could support regions in designing and implementing S3.,The paper shows the important contributions that SSH universities can make in their regions, both to support S3 and enhance the transition to sustainable development.,The article emphasises SSH universities’ multiple contributions to sustainable development and to innovation in the knowledge society/economy framework.,This case study captures SSH universities’ contributions to S3 and the wider innovation paradigm, by highlighting their transformational effect on regional economies.