[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/eurman/v30y2012i3p278-289.html
   My bibliography  Save this article

Emerging market firms’ acquisitions in advanced markets: Matching strategy with resource-, institution- and industry-based antecedents

Author

Listed:
  • Stucchi, Tamara
Abstract
This study draws upon the resource-based view and the institution-based view of the firm to provide a comprehensive overview of how different resource-, institution- and industry-based antecedents affect the motivations guiding the acquisitions that emerging market firms undertake in advanced markets. These antecedents can influence emerging market firms’ capacities to absorb or exploit technological and/or marketing advantages in advanced markets. In order to be successful, emerging market firms have to undertake those upmarket acquisitions that best “fit” their antecedents. Four mutually exclusive acquisition strategies are derived, which are then illustrated using examples of Indian firms’ acquisitions in advanced markets.

Suggested Citation

  • Stucchi, Tamara, 2012. "Emerging market firms’ acquisitions in advanced markets: Matching strategy with resource-, institution- and industry-based antecedents," European Management Journal, Elsevier, vol. 30(3), pages 278-289.
    • Handle: RePEc:eee:eurman:v:30:y:2012:i:3:p:278-289
    DOI: 10.1016/j.emj.2012.03.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0263237312000291
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.emj.2012.03.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Walter Kuemmerle, 1999. "The Drivers of Foreign Direct Investment into Research and Development: An Empirical Investigation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(1), pages 1-24, March.
    2. John A Mathews & Ivo Zander, 2007. "The international entrepreneurial dynamics of accelerated internationalisation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(3), pages 387-403, May.
    3. Suma Athreye & Sandeep Kapur, 2009. "The Internationalization of Chinese and Indian Firms: Trends, Motivations and Strategy," Birkbeck Working Papers in Economics and Finance 0904, Birkbeck, Department of Economics, Mathematics & Statistics.
    4. Patibandla, Murali & Petersen, Bent, 2002. "Role of Transnational Corporations in the Evolution of a High-Tech Industry: The Case of India's Software Industry," World Development, Elsevier, vol. 30(9), pages 1561-1577, September.
    5. Tarun Khanna & Krishna Palepu, 2000. "Is Group Affiliation Profitable in Emerging Markets? An Analysis of Diversified Indian Business Groups," Journal of Finance, American Finance Association, vol. 55(2), pages 867-891, April.
    6. John Mathews, 2006. "Dragon multinationals: New players in 21 st century globalization," Asia Pacific Journal of Management, Springer, vol. 23(1), pages 5-27, March.
    7. Okada, Aya, 2004. "Skills Development and Interfirm Learning Linkages under Globalization: Lessons from the Indian Automobile Industry," World Development, Elsevier, vol. 32(7), pages 1265-1288, July.
    8. Larissa Rabbiosi & Stefano Elia & Fabio Bertoni, 2012. "Acquisitions by EMNCs in Developed Markets," Management International Review, Springer, vol. 52(2), pages 193-212, April.
    9. Mike W Peng & Denis Y L Wang & Yi Jiang, 2008. "An institution-based view of international business strategy: a focus on emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 920-936, July.
    10. Tan, Danchi & Meyer, Klaus E., 2010. "Business groups' outward FDI: A managerial resources perspective," Journal of International Management, Elsevier, vol. 16(2), pages 154-164, June.
    11. Zaheer, Srilata, 2002. "The liability of foreignness, redux: a commentary," Journal of International Management, Elsevier, vol. 8(3), pages 351-358.
    12. Lall, Sanjaya, 1982. "The emergence of Third World multinationals: Indian joint ventures overseas," World Development, Elsevier, vol. 10(2), pages 127-146, February.
    13. John H. Dunning & Changsu Kim & Donghyun Park, 2008. "Old Wine in New Bottles: A Comparison of Emerging-Market TNCs Today and Developed-Country TNCs Thirty Years Ago," Chapters, in: Karl P. Sauvant (ed.), The Rise of Transnational Corporations from Emerging Markets, chapter 8, Edward Elgar Publishing.
    14. Steen Thomsen & Torben Pedersen, 2000. "Ownership structure and economic performance in the largest european companies," Strategic Management Journal, Wiley Blackwell, vol. 21(6), pages 689-705, June.
    15. Igor Filatotchev & Xiaohui Liu & Trevor Buck & Mike Wright, 2009. "The export orientation and export performance of high-technology SMEs in emerging markets: The effects of knowledge transfer by returnee entrepreneurs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(6), pages 1005-1021, August.
    16. Geert Duysters & Jojo Jacob & Charmianne Lemmens & Yu Jintian, 2009. "Internationalization and technological catching up of emerging multinationals: a comparative case study of China's Haier group," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(2), pages 325-349, April.
    17. Sumon Kumar Bhaumik & Nigel Driffield & Sarmistha Pal, 2010. "Does ownership structure of emerging-market firms affect their outward FDI? The case of the Indian automotive and pharmaceutical sectors," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(3), pages 437-450, April.
    18. Suma Athreye & Sandeep Kapur, 2009. "Introduction: The internationalization of Chinese and Indian firms: trends, motivations and strategy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(2), pages 209-221, April.
    19. Child, John & Rodrigues, Suzana B., 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?1," Management and Organization Review, Cambridge University Press, vol. 1(3), pages 381-410, November.
    20. Alvaro Cuervo-Cazurra & Mary M Maloney & Shalini Manrakhan, 2007. "Causes of the difficulties in internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(5), pages 709-725, September.
    21. Arora, Ashish & Gambardella, Alfonso (ed.), 2005. "From Underdogs to Tigers: The Rise and Growth of the Software Industry in Brazil, China, India, Ireland, and Israel," OUP Catalogue, Oxford University Press, number 9780199275601.
    22. Balagopal Vissa & Henrich R. Greve & Wei-Ru Chen, 2010. "Business Group Affiliation and Firm Search Behavior in India: Responsiveness and Focus of Attention," Organization Science, INFORMS, vol. 21(3), pages 696-712, June.
    23. Arora, Ashish & Arunachalam, V. S. & Asundi, Jai & Fernandes, Ronald, 2001. "The Indian software services industry," Research Policy, Elsevier, vol. 30(8), pages 1267-1287, October.
    24. Jean-François Hennart, 2009. "Down with MNE-centric theories! Market entry and expansion as the bundling of MNE and local assets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1432-1454, December.
    25. Deepak Nayyar, 2008. "The Internationalization of Firms From India: Investment, Mergers and Acquisitions," Oxford Development Studies, Taylor & Francis Journals, vol. 36(1), pages 111-131.
    26. Lianxi Zhou & Wei-ping Wu & Xueming Luo, 2007. "Internationalization and the performance of born-global SMEs: the mediating role of social networks," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 673-690, July.
    27. Raveendra Chittoor & MB Sarkar & Sougata Ray & Preet S. Aulakh, 2009. "Third-World Copycats to Emerging Multinationals: Institutional Changes and Organizational Transformation in the Indian Pharmaceutical Industry," Organization Science, INFORMS, vol. 20(1), pages 187-205, February.
    28. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    29. John Child & Suzana B. Rodrigues, 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?," Management and Organization Review, International Association of Chinese Management Research, vol. 1(3), pages 381-410, November.
    30. Liu, Xiaming & Xiao, Wen & Huang, Xianhai, 2008. "Bounded entrepreneurship and internationalisation of indigenous Chinese private-owned firms," International Business Review, Elsevier, vol. 17(4), pages 488-508, August.
    31. Fortanier, Fabienne & Tulder, Rob van, 2008. "Internationalization trajectories - a crosscountry comparison: Are large Chinese and Indian companies different?," MERIT Working Papers 2008-054, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    32. Larissa Rabbiosi & Stefano Elia & Fabio Bertoni, 2012. "Acquisitions by EMNCs in Developed Markets : An Organisational Learning Perspective," Post-Print hal-02312943, HAL.
    33. Schware, Robert, 1992. "Software industry entry strategies for developing countries: A "walking on two legs" proposition," World Development, Elsevier, vol. 20(2), pages 143-164, February.
    34. Pradhan, Jaya Prakash, 2008. "Overcoming Innovation Limits through Outward FDI: The Overseas Acquisition Strategy of Indian Pharmaceutical Firms," MPRA Paper 12362, University Library of Munich, Germany.
    35. B Elango & Chinmay Pattnaik, 2007. "Building capabilities for international operations through networks: a study of Indian firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 541-555, July.
    36. Rugman, Alan M. & Li, Jing, 2007. "Will China's Multinationals Succeed Globally or Regionally?," European Management Journal, Elsevier, vol. 25(5), pages 333-343, October.
    37. Suma Athreye & Andrew Godley, 2009. "Internationalization and technological leapfrogging in the pharmaceutical industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(2), pages 295-323, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rui, Huaichuan & Cuervo-Cazurra, Alvaro & Annique Un, C., 2016. "Learning-by-doing in emerging market multinationals: Integration, trial and error, repetition, and extension," Journal of World Business, Elsevier, vol. 51(5), pages 686-699.
    2. Lucio Fuentelsaz & Elisabet Garrido & Juan P. Maicas, 2015. "Incumbents, technological change and institutions: How the value of complementary resources varies across markets," Strategic Management Journal, Wiley Blackwell, vol. 36(12), pages 1778-1801, December.
    3. Vukicevic, Jelena & Fallon, Grahame & Ott, Ursula F., 2021. "A theoretical and empirical investigation into investment activities of technologically-intensive Chinese state-owned enterprises in the UK," International Business Review, Elsevier, vol. 30(1).
    4. Magnani, Giovanna & Zucchella, Antonella, 2021. "Portfolios of learning in entrepreneurial internationalisation," Journal of International Management, Elsevier, vol. 27(2).
    5. Bauer, Florian & Schriber, Svante & Degischer, Daniel & King, David R., 2018. "Contextualizing speed and cross-border acquisition performance: Labor market flexibility and efficiency effects," Journal of World Business, Elsevier, vol. 53(2), pages 290-301.
    6. Zheng, Nan & Wei, Yingqi & Zhang, Yabin & Yang, Jingjing, 2016. "In search of strategic assets through cross-border merger and acquisitions: Evidence from Chinese multinational enterprises in developed economies," International Business Review, Elsevier, vol. 25(1), pages 177-186.
    7. Hong Zhu & Qi Zhu, 2016. "Mergers and acquisitions by Chinese firms: A review and comparison with other mergers and acquisitions research in the leading journals," Asia Pacific Journal of Management, Springer, vol. 33(4), pages 1107-1149, December.
    8. Buckley, Peter J. & Munjal, Surender & Enderwick, Peter & Forsans, Nicolas, 2016. "Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?," International Business Review, Elsevier, vol. 25(4), pages 986-996.
    9. Agnihotri, Arpita & Bhattacharya, Saurabh, 2019. "Internationalization, related party transactions, and firm ownership structure: Empirical evidence from an emerging market," Research in International Business and Finance, Elsevier, vol. 48(C), pages 340-352.
    10. Child, John & Hsieh, Linda & Elbanna, Said & Karmowska, Joanna & Marinova, Svetla & Puthusserry, Pushyarag & Tsai, Terence & Narooz, Rose & Zhang, Yunlu, 2017. "SME international business models: The role of context and experience," Journal of World Business, Elsevier, vol. 52(5), pages 664-679.
    11. Barnard, Helena, 2021. "Host countries' level of development and internationalization from emerging markets: A typology of firm strategies," Journal of International Management, Elsevier, vol. 27(3).
    12. Manish Popli & Ashutosh Sinha, 2014. "Determinants of early movers in cross-border merger and acquisition wave in an emerging market: A study of Indian firms," Asia Pacific Journal of Management, Springer, vol. 31(4), pages 1075-1099, December.
    13. Ibeh, Kevin & Makhmadshoev, Dilshod, 2018. "Post-acquisition integration behavior of nascent African multinational enterprises," Journal of Business Research, Elsevier, vol. 93(C), pages 255-267.
    14. De Beule, Filip & Elia, Stefano & Piscitello, Lucia, 2014. "Entry and access to competencies abroad: Emerging market firms versus advanced market firms," Journal of International Management, Elsevier, vol. 20(2), pages 137-152.
    15. Deng, Ping & Yang, Monica, 2015. "Cross-border mergers and acquisitions by emerging market firms: A comparative investigation," International Business Review, Elsevier, vol. 24(1), pages 157-172.
    16. Garcia-Canal, Esteban & Rialp-Criado, Alex & Rialp-Criado, Josep, 2013. "Speed of ICT integration strategies in absorptions: Insights from a qualitative study," European Management Journal, Elsevier, vol. 31(3), pages 295-307.
    17. Li, Xue & Anwar, Sajid & Peng, Fei, 2022. "Cross-border acquisitions and the performance of Chinese publicly listed companies," Journal of Business Research, Elsevier, vol. 141(C), pages 575-588.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Buckley, Peter J. & Munjal, Surender & Enderwick, Peter & Forsans, Nicolas, 2016. "Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?," International Business Review, Elsevier, vol. 25(4), pages 986-996.
    2. Alessia Amighini & Claudio Cozza & Elisa Giuliani & Roberta Rabellotti & Vittoria Scalera, 2015. "Multinational enterprises from emerging economies: what theories suggest, what evidence shows. A literature review," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 343-370, September.
    3. Buckley, Peter J. & Munjal, Surender & Enderwick, Peter & Forsans, Nicolas, 2016. "Do foreign resources assist or impede internationalisation? Evidence from internationalisation of Indian multinational enterprises," International Business Review, Elsevier, vol. 25(1), pages 130-140.
    4. Buckley, Peter J. & Munjal, Surender & Enderwick, Peter & Forsans, Nicolas, 2016. "The role of experiential and non-experiential knowledge in cross-border acquisitions: The case of Indian multinational enterprises," Journal of World Business, Elsevier, vol. 51(5), pages 675-685.
    5. Gammeltoft, Peter & Filatotchev, Igor & Hobdari, Bersant, 2012. "Emerging multinational companies and strategic fit: A contingency framework and future research agenda," European Management Journal, Elsevier, vol. 30(3), pages 175-188.
    6. Ilan Alon & John Anderson & Ziaul Haque Munim & Alice Ho, 2018. "A review of the internationalization of Chinese enterprises," Asia Pacific Journal of Management, Springer, vol. 35(3), pages 573-605, September.
    7. Manish Popli & Ashutosh Sinha, 2014. "Determinants of early movers in cross-border merger and acquisition wave in an emerging market: A study of Indian firms," Asia Pacific Journal of Management, Springer, vol. 31(4), pages 1075-1099, December.
    8. Wei, Yingqi & Zheng, Nan & Liu, Xiaohui & Lu, Jiangyong, 2014. "Expanding to outward foreign direct investment or not? A multi-dimensional analysis of entry mode transformation of Chinese private exporting firms," International Business Review, Elsevier, vol. 23(2), pages 356-370.
    9. Wang, Chengqi & Hong, Junjie & Kafouros, Mario & Boateng, Agyenim, 2012. "What drives outward FDI of Chinese firms? Testing the explanatory power of three theoretical frameworks," International Business Review, Elsevier, vol. 21(3), pages 425-438.
    10. De Beule, Filip & Duanmu, Jing-Lin, 2012. "Locational determinants of internationalization: A firm-level analysis of Chinese and Indian acquisitions," European Management Journal, Elsevier, vol. 30(3), pages 264-277.
    11. Agnihotri, Arpita & Bhattacharya, Saurabh, 2019. "Internationalization, related party transactions, and firm ownership structure: Empirical evidence from an emerging market," Research in International Business and Finance, Elsevier, vol. 48(C), pages 340-352.
    12. Athreye, Suma & Saeed, Abubakr & Baloch, Muhammad Saad, 2021. "Financial crisis of 2008 and outward foreign investments from China and India," Journal of World Business, Elsevier, vol. 56(3).
    13. Lin Cui & Yi Li & Klaus E. Meyer & Zijie Li, 2015. "Leadership Experience Meets Ownership Structure: Returnee Managers and Internationalization of Emerging Economy Firms," Management International Review, Springer, vol. 55(3), pages 355-387, June.
    14. Conti, Claudio Ramos & Parente, Ronaldo & de Vasconcelos, Flávio C., 2016. "When distance does not matter: Implications for Latin American multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 1980-1992.
    15. Gammeltoft, Peter & Cuervo-Cazurra, Alvaro, 2021. "Enriching internationalization process theory: insights from the study of emerging market multinationals," Journal of International Management, Elsevier, vol. 27(3).
    16. Choi, Yoona & Cui, Lin & Li, Yi & Tian, Xizhou, 2020. "Focused and ambidextrous catch-up strategies of emerging economy multinationals," International Business Review, Elsevier, vol. 29(6).
    17. Geert Duysters & Myriam Cloodt & Wilfred Schoenmakers & Jojo Jacob, 2015. "Internationalisation Efforts of Chinese and Indian Companies: An Empirical Perspective," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 106(2), pages 169-186, April.
    18. Bianchi, Constanza & Wickramasekera, Rumintha, 2016. "Antecedents of SME export intensity in a Latin American Market," Journal of Business Research, Elsevier, vol. 69(10), pages 4368-4376.
    19. Sun, Jinyun & Wang, Stephanie L. & Luo, Yadong, 2018. "Strategic entry or strategic exit? International presence by emerging economy enterprises," International Business Review, Elsevier, vol. 27(2), pages 418-430.
    20. Suma Athreye & Sandeep Kapur, 2015. "Capital and Technology Flows: changing technology-acquisition strategies in developing countries," Birkbeck Working Papers in Economics and Finance 1511, Birkbeck, Department of Economics, Mathematics & Statistics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eurman:v:30:y:2012:i:3:p:278-289. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.