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Management International Review

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01.04.2012 | Research Article

Acquisitions by EMNCs in Developed Markets

An Organisational Learning Perspective

verfasst von: Assist. Prof. Larissa Rabbiosi, Assist. Prof. Stefano Elia, Assist. Prof. Fabio Bertoni

Erschienen in: Management International Review | Ausgabe 2/2012

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Abstract

Building on an organisational learning perspective, we argue that emerging market firms’ international experience and home-country characteristics are core sources of learning. Furthermore, we argue that these factors constitute important determinants of emerging market firms’ acquisition behaviour in developed countries (south-north acquisitions).
We test our hypotheses on a sample of 808 south-north acquisitions. The acquisitions were undertaken in Europe, Japan and North America (Canada and the US) between 1999 and 2008 by firms from the emerging economies of Brazil, Russia, India and China.
As suggested by the internationalisation process model, our results show that emerging market firms undertake acquisitions in developed countries in an incremental fashion. Acquisition experience in developed markets increases the likelihood of exploitative expansion, while acquisition experience in developing markets does not appear to have any effect. The results also show that a lack of market and knowledge-based resources at home curbs explorative acquisitions by firms in emerging markets.

Vorheriger Artikel Product Diversification and International Expansion of Business Groups

Nächster Artikel Cross-Regional Patenting

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In using the US input/output tables for a sample that does not only include transactions within the US, we implicitly assume that sectoral ties are not country-specific and that they reflect fundamental characteristics of the production technology. This assumption is common in empirical studies of international trade (such as Bowen et al.1987).

We consider the OECD countries and the transition Eastern European economies (with the exception of Russia) to be advanced countries. These correspond to the host countries in our sample. Knowledge arising from previous acquisitions in these countries is likely to be more useful for present and future acquisitions in these countries than knowledge arising from acquisitions made in other (developing) economies. Previous investments undertaken by EMNCs in Turkey, South Korea and Mexico, which now belong to the OECD, have been excluded from the OECD group and included in the developing country group, as these countries share characteristics of developing economies during most of the period considered in our sample.

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Titel: Acquisitions by EMNCs in Developed Markets
An Organisational Learning Perspective
verfasst von: Assist. Prof. Larissa Rabbiosi
Assist. Prof. Stefano Elia
Assist. Prof. Fabio Bertoni
Publikationsdatum: 01.04.2012
Verlag: SP Gabler Verlag
Erschienen in: Management International Review / Ausgabe 2/2012
Print ISSN: 0938-8249
Elektronische ISSN: 1861-8901
DOI: https://doi.org/10.1007/s11575-012-0134-3

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