Emerging market multinationals' pursuit of strategic assets through cross-border acquisitions*

Using a location perspective and knowledge-seeking view of strategic assets (SAs), this paper contends that emerging market multinational enterprises' (EMNEs) pursuit of SAs through cross -border acquisitions are multifaceted and respond differently to technologies than to brands, due to the ease of knowledge transfer. The role of 'host economy' strategic (technological and brand) assets in Chinese multinationals' location and acquisition decisions is studied. Brand assets overall are insignificant except when host economies are specifically endowed with brand esteem. Instead, EMNEs acquisitions are drawn to locations with highly-endowed technological assets. Of these assets, access to innovative processes are more important than innovative products. These results are sensitive to the enterprise's own R&D capability and state ownership, distinct from political connections. The findings suggest knowledge acquisition can be pursued to the extent these assets are tangible and transferrable. EMNEs' pursuit of technological assets reflects this and the state's goal of technological upgrading.