Acquisition vs. internal development as modes of market entry

Lee, Gwendolyn K.; Lieberman, Marvin B.

doi:10.1002/smj.804

Cited by 151 publications

(132 citation statements)

References 61 publications

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“…Nuestra cuarta hipótesis pronosticaba que las empresas que operan en sectores de menor intensidad tecnológica se decantarán por las adquisiciones como forma de establecimiento en otro país (Lee & Lieberman, 2010). Esta misma relación ha sido la encontrada tras examinar los resultados de nuestro modelo.…”

Section: Discussionunclassified

“…La elección del modo de entrada dependerá de la relación entre la base de recursos de la empresa y de los nuevos recursos requeridos por el mercado (Lee & Lieberman, 2010). Esto es, cuando la empresa decide irse a otro país, ésta puede hacer uso de sus capacidades específicas en el mercado extranjero a través de una IDE.…”

Section: Modos De Entradaunclassified

“…Atendiendo a este factor, una empresa que no posea muchos conocimientos sobre el mercado de destino y con una intensidad tecnológica débil puede optar por conseguir dicho conocimiento introduciéndose en el nuevo mercado a través de adquisiciones (Brouthers & Brouthers, 2000). Así, en sectores intensivos en tecnología, tales como las telecomunicaciones, las empresas preferirán desarrollar desde dentro la tecnología requerida (Barkema & Vermeulen, 1998;Lee & Lieberman, 2010).…”

Section: Factores Condicionantes De La Elección Del Modo De Estableciunclassified

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Foreign establishment mode: determinants in the case of Indian multinational Tata Group

García¹,

Cortés²,

Quer³

2013

cuadernosgestion

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This paper analyzes the factors influencing the choice between different FDI modes: acquisitions or greenfield investments. From a sample of 117 outward foreign direct investment (FDI) decisions made by the Indian multinational Tata in 43 countries, our findings show that industry technological intensity, host country risk, host market attractiveness, previous international experience and the volume of exports from India to the host country, are determining factors of this choice.

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Section: Discussionunclassified

Section: Modos De Entradaunclassified

Section: Factores Condicionantes De La Elección Del Modo De Estableciunclassified

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Foreign establishment mode: determinants in the case of Indian multinational Tata Group

García¹,

Cortés²,

Quer³

2013

cuadernosgestion

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“…The difference in market segments to which each partner's core business and product line belong reflects the market divergence between the two partners. Complying with many prior studies that measured a firm's market segment by standard industrial classification (SIC) (e.g., G. K. Lee & Lieberman, 2010;Pehrsson, 2006), we used SIC codes extracted from the COMPUSTAT database and compared between partnering firms. Specifically, the level of market divergence runs the gamut from zero to four, where 0 signifies the lowest market divergence when both partners have identical four-digit SIC codes, 1 for the same first three digits, 2 for the same first two digits, 3 for the same first digit, and 4 for totally different four-digit SIC codes.…”

Section: Methodsmentioning

confidence: 99%

Interpartner Differences and Governance Mode Dilemma: The Role of Alliance Scope

Tseng

2016

BAR, Braz. Adm. Rev.

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It is generally recognized that the governance structure of an alliance, equity versus nonequity, is an important strategic choice. Since an alliance teams up companies that are inevitably divergent in upstream resource endowment and/or downstream market coverage, it is necessary to select an appropriate governance form to manage the interpartner differences and thus facilitate cooperation. Nevertheless, prior studies have suggested conflicting governance modes despite their adherence to the rationale of transaction cost economics. To address this gap in extant literature, the current study takes into account the moderation of alliance scope in the interfirm difference-governance choice linkage. In sum, this paper argues that, to determine a suitable governance structure, there is a need to concurrently examine how different the partnering firms are from each other and what range the collective activities cover. Hierarchical logistic regression analysis was used to test hypotheses in a sample of 125 bilateral alliances. The empirical findings indicate that nonequity modes will be preferred for the alliances that have less interfirm resource disparity and narrower alliance scopes, while equity-based forms will be chosen for the alliances that have less interfirm market divergence and narrower alliance scopes.

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“…M&A offer several potential benefits such as reaching new markets (Lee and Lieberman, 2010), cross-selling, cost reductions through shared resources in logistics or production (Capron, 1999), or reaching new technologies and knowledge (Hagedornand Duysters, 2002). However, the organizational integration required to realize many benefits (Lubatkin, 1998, Sirower, 1997 has been found to be problematic (e.g.…”

Section: Introductionmentioning

confidence: 99%

Weakened Agents of Strategic Change: Negative Effects of M&A Processeson Integration Managers

Schriber¹

2012

IJBM

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Traditional accounts of M&A emphasize employees as victims of unintended negative effects of integration, resulting in poor motivation and productivity. In response, managers are seen as responsible for conducting integration while at the same time considering the well-being of employees. However, little research attention has been given the ability of integration managers to do so if they, too, suffer from low motivation and productivity. This study therefore asks how managers are affected by acquisition processes. Taking a structured approach to analyzing in-depth data from a Nordic acquisition it is shown that middle managers experience several negative effects of M&A, however with some distinct features. Interpreted through the commonly applied theoretical lens, the negative effects on integration managers should reduce their ability to successfully lead integration, in turn contributing to explain the often poor performance of M&A.

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Acquisition vs. internal development as modes of market entry

Cited by 151 publications

References 61 publications

Foreign establishment mode: determinants in the case of Indian multinational Tata Group

Foreign establishment mode: determinants in the case of Indian multinational Tata Group

Interpartner Differences and Governance Mode Dilemma: The Role of Alliance Scope

Weakened Agents of Strategic Change: Negative Effects of M&A Processeson Integration Managers

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