Cross-border acquisition performance of emerging market multinational enterprises: The moderating role of state-ownership and acquisition experience

Vijay Edward Pereira, Yama Temouri, Pawan Budhwar, Shlomo Tarba

    Research output: Contribution to journalArticlepeer-review

    20 Scopus citations

    Abstract

    This paper draws on the resource-based view and organizational learning theory to analyse the moderating role played by state ownership and acquisition experience in the performance of emerging market multinational enterprises (EMNEs). We contribute to the evolving literature on state-owned EMNEs by identifying various post cross-border acquisition (CBA) strategies, which have an impact on the performance of such firms that differs for the one they have on privately owned EMNEs. We test our hypotheses by performing a panel regression analysis on a large firm-level dataset spanning 43 emerging markets over the 2006–2015 period. Overall, our findings point at an inverted U-shape relationship between diversification through CBAs and firm performance. More specifically, this concave relationship is greater when the diversification occurs in developed countries, as opposed to emerging ones. Furthermore, there is evidence that state-ownership and EMNE acquisition experience moderate these relationships both in domestic and foreign markets, albeit with different intensities.

    Original languageBritish English
    Article number102107
    JournalLong Range Planning
    Volume54
    Issue number6
    DOIs
    StatePublished - Dec 2021

    Keywords

    • Cross border acquisition
    • Diversification
    • Emerging market multinational enterprises
    • Experience
    • State-ownership

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