Building on organizational learning theory, and notably on the notion of strategic momentum, we examine the antecedents of cross-border acquisitions, with a specific focus on the effect of experience. In particular, we unbundle firm experience into domestic and cross-border acquisition experience. Using data on 763 acquisitions in the period 2007-2013, our results show the existence of a U-shaped relationship between domestic acquisition experience and the likelihood of cross-border acquisitions: acquisition experience in the domestic market is negatively related to subsequent international M&A activity up to a certain level, after which accumulation of experience in the domestic market generates process-related capabilities that encourage subsequent cross-border acquisitions. Empirical support is provided for an inverted U-shaped relationship between prior cross-border acquisition experience and the likelihood of subsequent cross-border acquisitions: such experience encourages further acquisitions up to the point at which the coordination costs discourage further international expansion.

Galavotti, I., Cerrato, D., Depperu, D., Experience and Cross-Border Acquisitions: An Organizational Learning Perspective, <<EUROPEAN MANAGEMENT REVIEW>>, 2017; 14 (2): 119-131. [doi:10.1111/emre.12094] [http://hdl.handle.net/10807/105131]

Experience and Cross-Border Acquisitions: An Organizational Learning Perspective

Galavotti, Ilaria
Primo
;
Cerrato, Daniele
;
Depperu, Donatella
Ultimo
2017

Abstract

Building on organizational learning theory, and notably on the notion of strategic momentum, we examine the antecedents of cross-border acquisitions, with a specific focus on the effect of experience. In particular, we unbundle firm experience into domestic and cross-border acquisition experience. Using data on 763 acquisitions in the period 2007-2013, our results show the existence of a U-shaped relationship between domestic acquisition experience and the likelihood of cross-border acquisitions: acquisition experience in the domestic market is negatively related to subsequent international M&A activity up to a certain level, after which accumulation of experience in the domestic market generates process-related capabilities that encourage subsequent cross-border acquisitions. Empirical support is provided for an inverted U-shaped relationship between prior cross-border acquisition experience and the likelihood of subsequent cross-border acquisitions: such experience encourages further acquisitions up to the point at which the coordination costs discourage further international expansion.
2017
Inglese
Galavotti, I., Cerrato, D., Depperu, D., Experience and Cross-Border Acquisitions: An Organizational Learning Perspective, <<EUROPEAN MANAGEMENT REVIEW>>, 2017; 14 (2): 119-131. [doi:10.1111/emre.12094] [http://hdl.handle.net/10807/105131]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/105131
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