In search of strategic assets through cross-border merger and acquisitions: Evidence from Chinese multinational enterprises in developed economies

• The paper identifies the nature of strategic assets that are sought after by CMNEs.
• It offers new insights on the use of partnering approach in post-CBMA integration.
• The partnering approach is a viable strategy for securing strategic assets.

Drawing on multiple cases of cross-border merger and acquisitions (CBMAs) by Chinese multinational enterprises (CMNEs), we investigate their search of strategic assets in developed economies (DEs). It is a received view that CMNEs use CBMAs to access strategic assets in DEs so as to address their latecomer disadvantages and competitive weakness. This paper aims to identify the nature of strategic assets that sought after by CMNEs and the post-CBMA integration approach, a partnering approach, adopted in enabling access to these assets. The findings reveal that CMNEs possess firm-specific assets that give them competitive advantages at home and seek for complementary strategic assets in the similar domain, but at a more advanced level. The partnering approach helps securing these strategic assets through no or limited integration, giving autonomy to target firm management team, retaining talents and creating synergy.