Business Faculty Publications
Document Type
Article
Publication Date
2-2015
Publication Title
International Business Review
Keywords
Global/International Business; Comparative approach, Cross-border mergers and acquisitions, Emerging market firms (EMFs), International expansion, Resource dependence theory (RDT)
Disciplines
Business | Law
Abstract
This paper applies and extends resource dependence theory (RDT) to comparatively investigate major factors that determine the level of cross-border mergers and acquisitions (M&As) by emerging market firms (EMFs) in developed and developing markets. We argue that the resource dependence logic of M&As (or simply the M&A logic) provides a unique perspective in better understanding the internationalization of EMFs via cross-border M&As, but the explanation is bounded by institutional environment (i.e., government effectiveness) in a host nation. Our empirical results, based on a large panel data analysis of cross-border M&As by EMFs from nine emerging economies from 2000 to 2012, suggest that the intensity of EMFs to acquire vital resources for constraint absorption increases the likelihood of their cross-border M&As and the positive relationship is negatively moderated by host government effectiveness. On top of that, consistent with the predictions of resource dependence arguments, we found differences in the determinants of cross-border M&As by EMFs in developed and developing countries. Finally, host country factors attracting Chinese M&As are different from those attracting other emerging economies. Thus, generalization of Chinese M&A deals to other EMFs need to be cautious.
Recommended Citation
Deng, P., & Yang, M. (2015) Cross-Border Mergers and Acquisitions by Emerging Market Firms: A Comparative Investigation. International Business Review, 24, 1, pp. 157-172.
DOI
10.1016/j.ibusrev.2014.07.005
Version
Postprint
Publisher's Statement
NOTICE: this is the author’s version of a work that was accepted for publication in International Business Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Business Review, 24, 1, (2015); http://dx.doi.org/10.1016/j.ibusrev.2014.07.005
Volume
24
Issue
1
