[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/taf/ugitxx/v25y2022i2p159-187.html
   My bibliography  Save this article

A digitalized global economy: Studying the effect of digital readiness of countries on international merger and acquisition flows

Author

Listed:
  • M. Mahdi Moeini Gharagozloo
  • Chen Chen
  • Anil Nair
  • Ali Moeini Gharagozloo
Abstract
In the dynamic economic paradigm of the 21st century, the increasing importance of digitalization of economies motivates research on the role it plays for international capital flows. While the literature suggests that digitalization is revolutionizing different industries and sectors, few studies explore how the level of digital readiness of countries is impacting their abilities in attracting international investments. Drawing on insights from the resource-based view perspective this paper examines whether a country’s digital readiness helps it attract capital flows through increased international mergers and acquisitions (IMA). We argue that a higher level of digital readiness of a host country is associated with more IMAs targeting that country, especially for IMA deals in technology-intensive industries. We find evidence consistent with our model using a sample of 5347 IMAs by publicly traded US firms during the period 2010–2016. Overall, this study contributes to a better understanding of the mechanisms through which digitalization of economies impacts the global strategies of firms. The findings of this study provide evidence to policy makers about the impact of digital readiness on economy and this study is the first to examine the role of digital readiness in attracting IMAs.

Suggested Citation

  • M. Mahdi Moeini Gharagozloo & Chen Chen & Anil Nair & Ali Moeini Gharagozloo, 2022. "A digitalized global economy: Studying the effect of digital readiness of countries on international merger and acquisition flows," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 25(2), pages 159-187, April.
    • Handle: RePEc:taf:ugitxx:v:25:y:2022:i:2:p:159-187
    DOI: 10.1080/1097198X.2022.2062994
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1097198X.2022.2062994
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1097198X.2022.2062994?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.

    Citations

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


    Cited by:

    1. Chen Chen & M. Mahdi Moeini Gharagozloo & Layla Darougar & Lei Shi, 2022. "The way digitalization is impacting international financial markets: Stock price synchronicity," International Finance, Wiley Blackwell, vol. 25(3), pages 396-415, December.
    2. M. Mahdi Moeini Gharagozloo & Julaine Rigg & Farinaz Sabz Ali Pour & Chen Chen & Mozhgan Moeini Gharagozloo, 2024. "Quantitative Analysis of Countries’ Initial Responses to COVID-19 Pandemic: The Effect of Change Readiness," RAIS Conference Proceedings 2022-2024 0397, Research Association for Interdisciplinary Studies.

    More about this item

    Statistics

    Access and download 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:taf:ugitxx:v:25:y:2022:i:2:p:159-187. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/ugit .

    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.