Acquisitions as Entrepreneurship: Asymmetries, Opportunities and the Internationalization of Multinationals from Emerging Economies
38 Pages Posted: 27 Mar 2010 Last revised: 24 Oct 2011
Date Written: March 26, 2010
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
Suggested Citation: Suggested Citation