Acquisition Behavior of Emerging Versus Developed Market Multinationals
Open Access
- 28 May 2019
- journal article
- research article
- Published by Vilnius University Press in Organizations and Markets in Emerging Economies
- Vol. 10 (1), 9-30
- https://doi.org/10.15388/omee.2019.10.00001
Abstract
The purpose of this paper is to investigate how emerging and developed market multinationals (EMMs and DMMs) differ in their acquisition behavior (vis-a-vis the choice of partial versus full acquisitions) when entering a developed market economy, Japan. We hypothesize that EMMs prefer partial acquisitions, whereas DMMs prefer full acquisitions due to what we call the country-of-origin effect. Additionally, we hypothesize that this country-of-origin effect is more pronounced for smaller firms. The results, based upon 224 strategic cross-border acquisitions in Japan, support these two hypotheses. This study contributes to the literature on EMMs.Keywords
This publication has 53 references indexed in Scilit:
- A comparative analysis of the role of national culture on foreign market acquisitions by U.S. firms and firms from emerging countriesJournal of Business Research, 2011
- Down with MNE-centric theories! Market entry and expansion as the bundling of MNE and local assetsJournal of International Business Studies, 2009
- Transforming disadvantages into advantages: developing-country MNEs in the least developed countriesJournal of International Business Studies, 2008
- Cultural distance, investment flow, and control in cross‐border cooperationStrategic Management Journal, 2008
- Foreign acquisitions by Chinese firms: A strategic intent perspectiveJournal of World Business, 2008
- The motives for international acquisitions: capability procurements, strategic considerations, and the role of ownership structuresJournal of International Business Studies, 2008
- Institutional and transaction cost influences on MNEs’ ownership strategies of their affiliates: Evidence from an emerging marketJournal of World Business, 2007
- Multinational banks from developing versus developed countries: Competing in the same arena?Journal of International Management, 2007
- International venturing by emerging economy firms: the effects of firm capabilities, home country networks, and corporate entrepreneurshipJournal of International Business Studies, 2007
- International expansion of emerging market enterprises: A springboard perspectiveJournal of International Business Studies, 2007