Learning by Doing: Cross-Border Mergers and Acquisitions

22 Pages Posted: 30 Dec 2008 Last revised: 13 Jul 2010

Jamie D. Collins

Sam Houston State University

Tim R. Holcomb

Miami University - Farmer School of Business

S. Trevis Certo

Arizona State University (ASU)

Michael A. Hitt

Texas A&M University - Department of Management

Richard H. Lester

Louisiana Tech University - College of Business

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

Collins, Jamie D. and Holcomb, Tim R. and Certo, S. Trevis and Hitt, Michael A. and Lester, Richard H., Learning by Doing: Cross-Border Mergers and Acquisitions (June 1, 2008). Journal of Business Research, 2008. Available at SSRN: https://ssrn.com/abstract=1321082

Jamie D. Collins

Sam Houston State University ( email )

Box 2056
Huntsville, TX 77341
United States

Tim R. Holcomb (Contact Author)

Miami University - Farmer School of Business ( email )

Oxford, OH 45056
United States

HOME PAGE: http://fsb.miamioh.edu/

S. Trevis Certo

Arizona State University (ASU) ( email )

Farmer Building 440G PO Box 872011
Tempe, AZ 85287
United States

Michael A. Hitt

Texas A&M University - Department of Management ( email )

430 Wehner
College Station, TX 77843-4218
United States
979-458-3393 (Phone)

Richard H. Lester

Louisiana Tech University - College of Business ( email )

Railload and College Ave.
Ruston, LA 71272
United States
318-257-3984 (Phone)
318-257-4253 (Fax)

HOME PAGE: http://ir.latech.edu/directory/lookup1.php

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