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Transport and Logistics in a Globalizing World: An Appraisal Read chapter Read first chapter

2015 | OriginalPaper | Chapter

3. Integration Strategies and the Related Drivers. A Focus on Inward FDIs in Italy

Author : Ilaria Mariotti

Published in: Transport and Logistics in a Globalizing World

Publisher: Springer International Publishing

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Abstract

MNEs operations abroad—by means of green field or brown field investments—can take the form of horizontal (H), vertical (V) and conglomerate (C) integrations (Is). These are driven by several motives that can vary from increasing market power to high capital returns. After a review of the literature on this topic, the present chapter focuses on integration strategies undertaken by foreign MNEs in the transport and logistics industry in Italy in the period 2000–2010. It results that horizontal integrations prevail, and are driven by increasing or defending market shares, and economies of scale’ achievement. The main purpose of vertical integrations is the extension of the range of supplied services, which makes that it is possible to achieve competitive advantages, economies of scale and scope, and to cut transaction costs. Finally, there are various factors at the basis of the reasons for conglomerate integrations, above all, achieve economies of scale, and reduce transaction costs.

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previous chapter Location Determinants of Transport and Logistics FDIs. A Focus on China and Italy
next chapter Domestic and Foreign Logistics Firms. How Heterogeneity Affects Firm Performance
Footnotes
1
Richard Caves’s work (1971) was the first to introduce the ground-breaking distinction between horizontal and vertical integration of MNE operations across national boundaries.
 
2
In this chapter the terms “integration strategies” and “investments” are used synonymously.
 
3
For an overview of internationalization investments see Chap. 1.
 
4
The study published yearly since 2008 by Federtrasporto-Nomisma concerns inward FDI in the form of M&A, thus neglecting greenfield investments. This study is based on the M&A Trasporti database, developed by Nomisma in 2001, which registers the principal operations worldwide since 1999.
 
5
Specifically, the strategic management literature refers to the “relatedness” that is the degree of correspondence between an acquirer and its target (Haleblian and Finkelstein 1999).
 
6
For a review of the data see Appendix.
 
7
See Chap. 1, for definition of the transport and logistics sectors.
 
8
The first ten global players which invested in Italy at the year 2008 were: Arriva International, Apollo Global Management, Eurokai, TNT, 3I Group, Deutsche Bahn, Deutsche Post, Interprogramme Holding, A.P. Moller–Maersk, Kuwait Petroleum (for a review, see Maggi and Mariotti 2009).
 
9
It includes: I 63.1—cargo handling and storage; I 63.21—other supporting transport activities; I 63.40—activities of other transport agencies (forwarders, intermodal transport and logistics integrators) (see Chap. 1).
 
10
To be more precise, Eurokai controls the Italian Contship Group Spa, to which Sogemar and Hannibal belong (Maggi and Mariotti 2010).
 
11
SNCF made these acquisitions via the Geodis Group, the worldwide logistics leader that it owns.
 
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Metadata
Title
Integration Strategies and the Related Drivers. A Focus on Inward FDIs in Italy
Author
Ilaria Mariotti
Copyright Year
2015
Book
Transport and Logistics in a Globalizing World

Print ISBN: 978-3-319-00010-7

Electronic ISBN: 978-3-319-00011-4

Copyright Year: 2015

DOI
https://doi.org/10.1007/978-3-319-00011-4_3