ANAND, Jaideep
Absolute and relative resources as determinants of international acquisitions - 2002
Although it is established that firms sometimes expand agroad to augment their capabilities. Previous studies have generally focused on technological determinants of foreign expansion. We analyze capability-seeking aspects of foreign direct investment by examining the relationship between upstream (technological) and downstream (marketing) capabilities and the choice between acquisition and greenfield modes of international entry. In analyzing 2175 entries by British, German, and Japanese investors into the United States, we find that for downstream capabilities, which tend not to be geographically fungible, the absolute level of capabilities in the extered industry explains the mode choice. However, for upstream capabilities, which tend to be geographically fungible, the acquisition motive stems from a relative capability differential between host and home country firms. These results have implications for the concept of fungibility in the resource-based view of the firm as well as for the literature on sourcing of resident assets by foreing firms, which has thus far ignored issues of entry mode and downtream assets
Compra
Entre Mode
Capabilities
Technology
Distribution
Absolute and relative resources as determinants of international acquisitions - 2002
Although it is established that firms sometimes expand agroad to augment their capabilities. Previous studies have generally focused on technological determinants of foreign expansion. We analyze capability-seeking aspects of foreign direct investment by examining the relationship between upstream (technological) and downstream (marketing) capabilities and the choice between acquisition and greenfield modes of international entry. In analyzing 2175 entries by British, German, and Japanese investors into the United States, we find that for downstream capabilities, which tend not to be geographically fungible, the absolute level of capabilities in the extered industry explains the mode choice. However, for upstream capabilities, which tend to be geographically fungible, the acquisition motive stems from a relative capability differential between host and home country firms. These results have implications for the concept of fungibility in the resource-based view of the firm as well as for the literature on sourcing of resident assets by foreing firms, which has thus far ignored issues of entry mode and downtream assets
Compra
Entre Mode
Capabilities
Technology
Distribution
