Birmingham Business School Discussion Paper Series Title: The making of an innovative multinational firm: Chinese capability development through the acquisition of MG Rover Author: Simon Collinson Discussion Paper: 2013-04 The making of an innovative multinational firm: Chinese capability development through the acquisition of MG-Rover Simon Collinson Birmingham Business School University of Birmingham Email
[email protected] Abstract This paper examines the transfer, replication and adaption of knowledge, assets and capabilities in MG Rover from the British workforce to the new Chinese owners and employees at Nanjing Automotive Corporation (NAC). The study explores the intra- organisational processes adopted to integrate knowledge, innovation-related routines and networks. We identify distinctive mechanisms for both ‘discrete’ transfers and ‘cumulative’ flows of knowledge and capabilities, with different kinds of impact on the innovative capacity of the recipient firm. With the more recent take-over of NAC by SAIC the MG-NAC restructuring is examined as part of the broader evolution of a large, innovative and multinational Chinese car firm. The study also provides insights into the changing complementarities between Western and Chinese manufacturers and lessons for managers regarding effective alignment with evolving competitors. Key words; take-overs, inter-organisational processes, knowledge flows This discussion paper is copyright of the University, the author and/or third parties. The intellectual property rights in respect of this work are as defined by The Copyright Designs and Patents Act 1988 or as modified by any successor legislation. Any use made of information contained in this paper must be in accordance with that legislation and must be properly acknowledged.