Acquisitions as Entrepreneurship: Asymmetries, Opportunities and the Internationalization of Multinationals from Emerging Economies

Abstract

We investigate the rapid internationalization of many multinationals from emerging economies through acquisition in advanced economies. We conceptualize these acquisitions as an act and form of entrepreneurship, aimed to overcome the ‘liability of emergingness’ incurred by these firms and to serve as a mechanism for competitive catch-up through opportunity seeking and capability transformation. Our explanation emphasizes unique asymmetries (and not necessarily advantages) of emerging multinationals due to their historical and institutional differences with advanced economy multinationals, as well as a search for advantage creation when firms possess mainly ordinary resources. The argument shifts the central focus from advantage to asymmetries as the starting point for internationalization.

Keywords: Acquisition, Internationaliztion, Entrepreneurship, Emerging Markets, Multinational Firm, competitive advantage

JEL Classification: F23, M13, M10