Extant reviews on entry-mode/internationalization, mergers & acquisitions, and diversification: Understanding theories and establishing interdisciplinary research

Abstract

This paper aims to accomplish three objectives while drawing attention to the speed of adapting international management practices in emerging markets. First, we summarize 67 extant review studies on entry-mode/internationalization, mergers and acquisitions (M&A) and diversification. Second, a synopsis of 17 theories propounded in different disciplines referring to business organization and management is presented, including the theory of foreign direct investment, market imperfections theory, the theory of transaction cost economics, internalization theory, eclectic paradigm, the Uppsala theory of internationalization, longpurse theory, resource-based-view theory, resource dependence theory, the theory of competitive advantage, organizational learning theory and learning-by-doing, bargaining power theory, information asymmetry theory, agency theory, institutional theory, liability of foreignness, and market efficiency theory. Last, we propose a two-band model both for establishing interdisciplinary research and for promoting more theory-building research in global strategic management. We also recommend a few research arguments for potential exploration in entry-mode, M&A and diversification.

Market for Corporate Control and Contractual Buyout (CoBO): A New 'Collective Ownership-and-Administrative' Strategy

“…We further comprehend the previous studies on definite strategies such as diversification, turnaround, and foreign market entry modes (e.g., Bruton et al, 2003;Chakrabarti et al, 2007;Hennart and Reddy, 1997;Matusik and Fitza, 2012;Oh and Contractor, 2012;Reddy, 2015bReddy, , 2015c. More specifically, we recognize various linked perceptions on buyouts and entrepreneurship (e.g., Ragozzino and Reuer, 2010), emerging economies and inorganic-tactics (e.g., Brannen and Voisey, 2012;Ramamurti, 2012), and other allied contributions in the mergers and buyouts research.…”

“…We frame the study by drawing on studies, such as, choice among mergers, acquisitions, alliances, collaborations, greenfield investments, joint ventures, and divestitures (e.g., Anand and Delios, 2002;Ariño and Ring, 2010;Elango and Pattnaik, 2011;Fjeldstad, Snow, Miles, and Lettl, 2012;Hennart and Reddy, 1997;Meyer, Estrin, Bhaumik, and Peng, 2009;Moschieri, 2011;Reddy, 2015bReddy, , 2015cSlangen, 2011;Villalonga and Mcgahan, 2005;Wright, Kroll, Lado, and Ness, 2002). We also review the studies on restructuring, diversification, and performance (e.g., Bruton, Ahlstrom, and Wan, 2003;Chakrabarti, Singh, and Mahmood, 2007;Makhija, 2004;Matusik and Fitza, 2012;Miller, 2006;Oh and 1 The authors review the extent studies on market for corporate control, and document that takeovers generate positive margins, which bidding firm shareholders do not lose where as target firm shareholders are benefited.…”

Three decades of strategic management research on M&As: Citations, co-citations, and topics

“…First, it contributes to gain a broad understanding of the accumulated knowledge on the topic of M&As as researched by strategic management scholars, complementing other literature reviews (e.g., Datta et al, 1992;Shimizu et al, 2004;Ferreira et al, 2014;Reddy, 2015aReddy, , 2015b. Specifically, it complements Ferreira et al's (2014) bibliometric study by narrowing the focus to strategic management research, using a single and dedicated outlet to strategic management studies.…”

“…It is further a complement to Werner's (2002) review of international management literature that did not include cross-border M&As among the 12 topics identified. And, to Shimizu et al (2004) and Reddy (2015aReddy ( , 2015b that described cross-border M&As in international business literature. Taking a narrow disciplinary lens we are better able to distinguish discipline specific advancements and emphasis.…”

The State of Case Study Research in Mergers & Acquisitions: A Review of the Literature in Different Management Streams

“…stocks and accounting), use of quantitative methods, speed in reaching the conclusion and validity of the study. On the other hand, IB discipline is one of the youngest and fastest growing academic streams in business administration research, which really require a great attention from qualitative researchers due to heavy empirical setting noticed in the literature (Aharoni and Brock, 2010;Reddy, 2015aReddy, , 2015bSeno-Alday, 2010). Even if, when researchers perform the given job rigorously, and reported clearly and concisely, thus the qualitative method is a powerful tool for management researchers that provides a great deal of merits beyond what traditional survey methods can provide (Shah andCorley, 2006, p. 1830).…”