ACQUISITION BEHAVIOR OF EMERGING VERSUS DEVELOPED MARKET MULTINATIONALS
ACQUISITION BEHAVIOR OF EMERGING VERSUS DEVELOPED MARKET MULTINATIONALS
Author(s): Kashif Ahmed, Ralf BebenrothSubject(s): Supranational / Global Economy, Business Economy / Management
Published by: Vilniaus Universiteto Leidykla
Keywords: Emerging markets multinationals (EMMs); developed market multinationals (DMMs); partial acquisitions; full acquisitions; Japan;
Summary/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.
Journal: Organizations and Markets in Emerging Economies
- Issue Year: 10/2019
- Issue No: 19
- Page Range: 9-30
- Page Count: 22
- Language: English
