Learning by Doing: Cross-Border Mergers and Acquisitions
22 Pages Posted: 30 Dec 2008 Last revised: 13 Jul 2010
Date Written: June 1, 2008
Abstract
We rely on organizational learning theory and strategic momentum research to examine the international merger and acquisition (M&A) activities of a sample of S&P 500 firms. We hypothesize that the learning associated with a firm's prior acquisition experience increases the likelihood the firm will engage in subsequent international acquisitions. Results from a sample including company-country level data indicate that both prior domestic acquisitions and international acquisitions influence the likelihood of acquisitions in foreign markets by U.S.-based firms. We also find that prior experience with international acquisitions is more predictive of subsequent international acquisitions than prior domestic acquisition experience. Moreover, we find that the acquisition experience within a host country had a stronger influence on subsequent acquisitions within that country than other prior non-host country international acquisition experiences.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Managing Resources: Linking Unique Resources, Management and Wealth Creation in Family Firms
By David G. Sirmon and Michael A. Hitt
-
Managing Firm Resources in Dynamic Environments to Create Value: Looking Inside the Black Box
By David G. Sirmon, Michael A. Hitt, ...
-
A Model of Strategic Entrepreneurship: The Construct and its Dimensions
By R. Duane Ireland, Michael A. Hitt, ...
-
Knowledge Search in International Cooperative Ventures
By Oded Shenkar and Jiatao Li
-
Creating Value in the Face of Declining Performance: Firm Strategies and Organizational Recovery
By J.l. Morrow, David G. Sirmon, ...
-
Resource Management in Dyadic Competitive Rivalry: The Effects of Resource Bundling and Deployment
By David G. Sirmon, Steve Gove, ...
-
Toward a Model of Strategic Outsourcing
By Tim R. Holcomb and Michael A. Hitt
-
Making the Most of What You've Got: Managerial Ability as a Source of Resource Value Creation
By Tim R. Holcomb, R. Michael Holmes, ...