Cross-border acquisitions vs. Greenfield investment: A comparative performance analysis in Greece

Γεωργόπουλος, Αντώνιος; Preuße, Heinz Gert

doi:10.1016/j.ibusrev.2009.07.005

Cited by 24 publications

(19 citation statements)

References 41 publications

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“…This leads to mixed results with some of these studies suggesting that greenfields perform better than acquisitions because of lower control and integration costs (Woodcock et al 1994;Nitsch et al 1996;Havrylchyk and Jurzyk 2011;Dadzie et al 2014). Other studies find the opposite to be true-acquisitions are more likely to succeed because they do not suffer from liability of newness that plague greenfield operations (Pennings et al 1994) or because foreign acquirers target local value-generating assets or the most efficient local firm (Haar and Marinescu 2014;Georgopoulos and Preusse 2009).…”

Section: Performance Of Establishment Modesmentioning

confidence: 99%

International Establishment Mode Choice: Past, Present and Future

Dikova

Brouthers

2015

Manag Int Rev

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Despite over three decades of research focusing on the choice multinational enterprises make between establishing foreign operations through either cross-border acquisitions or greenfield start-ups our understanding of the issues that impact this choice and the performance outcomes of making this decision is still unclear. To help improve knowledge in this area we provide a comprehensive review of the empirical studies on international establishment mode choice published between 1980 and 2015. Through this method we gain a greater understanding of the theories used, the variables employed, and the empirical results. In this way we can detect inconsistencies and offer suggestions for future research. We identify a number of issues that future studies need to address: changes to the models, introducing new theories or combining theories, applying new or better methods, and most importantly linking this choice to performance. Hence, our study consolidates knowledge in this area and highlights several ways to improve our understanding of the international establishment mode decision.

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Section: Performance Of Establishment Modesmentioning

confidence: 99%

International Establishment Mode Choice: Past, Present and Future

Dikova

Brouthers

2015

Manag Int Rev

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“…In contrast, when comparing the long-term performance of acquisitions versus greenfield FDI in a large empirical research conducted on a sample of 179 manufacturing foreign affiliates in Greece, Georgopoulos and Preusse (2009) found that cross-border acquisitions fare better in terms of market share and capital intensity, resting on the fact that MNEs are eager to acquire the most efficient firms in the host country and actively engage in assisting these firms in their upgrading procedures. Differences in profitability turned out to be minor, though.…”

Section: Eu Mnes Given Their Increased Familiarity To Cee Compared Tmentioning

confidence: 94%

Entry Modes and Firm Performance in a Transition Economy: Evidence from Inward FDI to Romania

Haar

Marinescu

2014

Journal of East-West Business

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The article analyzes the characteristics and performance of foreign direct investment (FDI) to Romania since the 1990s. We provide evidence for some of the commonly advanced propositions about FDI in transition economies, namely the selection of entry and firms' performance over time and across economic sectors. Contrary to the FDI literature, multinational enterprises in Romania favored greenfield FDI over acquisitions, although this does not apply to oligopolistic and technology intensive industries. Specific relationships between the nationality of the investor, the location and the entry modes decisions are also analyzed. We observed that acquisitions exhibited higher profit margin and turnover compared to greenfield FDI.

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“…Considering the critical importance of entry mode on internationalisation strategy, a number of authors have come forward to examine various entry strategies -like joint venture, greenfield and acquisition. For example, Georgopoulos andPreusse (2009), Slangen andHennart (2008) compared the greenfield and acquisition entry from the context of MNCs from developed countries. Demirbag, Tatoglu and Glaister (2008) and Arslan and Larimo (2011) explored the suitability of greenfield and acquisition from the context of emerging markets.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Barriers to enter in foreign markets: evidence from SMEs in emerging market

Rahman

Uddin

Lodorfos

2017

IMR

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Purpose -For Small and Medium Enterprises (SMEs), entering foreign markets is considered a key strategy for growth and survival. However, the decision to enter is hardly straightforward.SMEs need to analyse the key barriers to entering these markets, so the purpose of this paper is to identify the obstacles that exist to SMEs in an emerging economy.Design/methodology/approach -This study has collected primary data through questionnaires from 212 Bangladeshi SMEs. A mixed method data analysis technique is used to analyse firms from micro and macro level. Following the running example based case study approach, this paper has developed and validated a partial least square based structural model (PLS-SEM) to assess the key barriers to entering foreign markets.Findings -In entering into foreign markets, and emerging economies, this study has identified key socio-economic barriers faced by Bangladeshi SMEs. Additionally, the study has successfully framed the obstacles as a second order hierarchical model. Originality/value -Consider that foreign market entry is perhaps more affected by social barriers as explained by existing theories, including the Uppsala model. Using institutional interpretation, this study reveals that in developing countries, SME international market expansion is more sensitive to the existence of economic barriers.

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Cross-border acquisitions vs. Greenfield investment: A comparative performance analysis in Greece

Cited by 24 publications

References 41 publications

International Establishment Mode Choice: Past, Present and Future

International Establishment Mode Choice: Past, Present and Future

Entry Modes and Firm Performance in a Transition Economy: Evidence from Inward FDI to Romania

Barriers to enter in foreign markets: evidence from SMEs in emerging market

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