New Geography of M&As: A Framing Device of Firms' Strategies

Abstract

The emergence of new economic centers is changing the competitive scenario. The diffusion of power across an increasingly broad range of countries has opened a window of opportunity for fi rms from China that want to compete globally. These fi rms understand their options in exploiting economic geography, and they frequently use cross-border mergers and acquisitions (M&As) to penetrate developed countries. The United States and Europe are becoming natural destinations for such investments because of their huge markets and leading-edge technologies. This article provides a "framing device" for fi rms' strategies in a multipolar world.

Management of Overseas Acquisitions by Developing Country Multinationals and Its Performance Implications: The Indian Example

“…One of the distinguishing features in the internationalization of DMNCs is their tendency to acquire companies in advanced economies (Caiazza, Very, & Ferrara, ; Madhok & Keyhani, ). Some extant research has investigated why DMNCs do overseas acquisitions (Chittoor, ; Luo & Tung, ) and the industries and geographies where their acquisition activity is pronounced (Awate, Larsen, & Mudambi, ; Luedi, ).…”

Defying Distance? Cross-Border Acquisitions by Emerging-Economy Firms

“…CBAs have emerged as the dominant vehicle for foreign expansion, particularly for EE firms, and hence our focus on CBAs is appropriate (Caiazza & Dauber, ; Caiazza, Very, & Ferrara, ; Chari & Chang, ). Because of the need to adjust simultaneously to the cultures of the target firm and the host country, international expansion through CBAs is particularly difficult (Barkema, Bell, & Pennings, ).…”

Kraft's acquisition of Cadbury: Was it an amicable transatlantic merger or a hostile takeover?

“…At the same time, cross‐border M&As are on the rise, and their value surpassed $4.28 trillion in 2015 (Teagarden, , p. 145). As stated earlier, cross‐border M&As are important in global business and are pursued to seek internationalization, corporate expansion, and other operational efficiencies (see Brooks, Zeng, & Zeng, ; Caiazza, Shimizu, & Yoshikawa, ; Caiazza, Very, & Ferrara, ; Chari & Shaikh, ; Popli & Kumar, ; Rottig, ). In simple terms, “ organizational justice ” and in‐house corporate support are needed for successful M&As (Bebenroth & Thiele, , p. 227).…”