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

38 Pages Posted: 27 Mar 2010 Last revised: 24 Oct 2011

See all articles by Anoop Madhok

Anoop Madhok

York University - Schulich School of Business

Mohammad Keyhani

University of Calgary - Haskayne School of Business

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

Madhok, Anoop and Keyhani, Mohammad, Acquisitions as Entrepreneurship: Asymmetries, Opportunities and the Internationalization of Multinationals from Emerging Economies (March 26, 2010). Available at SSRN: https://ssrn.com/abstract=1578907 or http://dx.doi.org/10.2139/ssrn.1578907

Anoop Madhok (Contact Author)

York University - Schulich School of Business ( email )

470 Keele Street
Toronto, ON M3J 1P3
Canada
416-736-2100 x20578 (Phone)

HOME PAGE: http://research.schulich.yorku.ca/faculty-profile-details.jsp?id=87&tab=0

Mohammad Keyhani

University of Calgary - Haskayne School of Business ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada

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