Do Institutional Distances Influence South-South Cross-Border Acquisitions?

Stephanie Tonn Goulart Moura, Juliano Krug, Christian Falaster, Iara Regina dos Santos Parisotto

Resumo


Different countries have different institutional environments. In this way, multinational companies must deal with the difficulties imposed by the differences between their home environment and that of the country where they are inserted. In this article, we analyze the effects of institutional distance on South-South acquisitions. Specifically, we analyze the effect of institutional distance on the amount of participation chosen in Latin American international acquisitions in Brazil. More specifically, the effect of institutional distance is analyzed through the percentage of shares acquired in international acquisitions. Our results contribute to the theory in international business because it explains why Latin American companies prefer to make total acquisitions even in situations of high institutional distances.


Palavras-chave


International Business; International Strategy; Acquisition; Institutional Environment; Institutional Distance

Texto completo:

PDF (English)

Referências


Agarwal, S., & Ramaswami, S. N. (1992). Choice of foreign market entry mode: Impact of ownership, location and internalization factors. Journal of International Business Studies, 23(1), 1-27.

Ahuja, G. and Katila, R. (2004) ‘Where do resources come from? The role of idiosyncratic situations’, Strategic Management Journal 25(8/9): 887–908.

Amal, M., & Seabra, F. (2007). Determinantes do investimento direto externo (IDE) na América Latina: uma perspectiva institucional. Revista economia, 8(2), 231-247.

Aybar, B., & Ficici, A. (2009). Cross-border acquisitions and firm value: An analysis of emerging-market multinationals. Journal of International Business Studies, 40(8), 1317-1338.

Barkema, H. G., Bell, J. H., & Pennings, J. M. (1996). Foreign entry, cultural barriers, and learning. Strategic management journal, 17(2), 151-166.

Barkema, H., & Vermeulen, F. (1998). International expansion through start-up or acquisition: A learning perspective. Academy of Management Journal, 41(1), 7-26.

Berry, H., Guillén, M. F., & Zhou, N. (2010). An institutional approach to cross-national distance. Journal of International Business Studies, 41(9), 1460-1480.

Brewer, P. A. (2007). Operationalizing psychic distance: A revised approach. Journal of International Marketing, 15(1), 44-66.

Campa, J., & Guillén, M. F. (1999). The internalization of exports: Firm-and location-specific factors in a middle-income country. Management Science, 45(11), 1463-1478.

Caves, R. E. 1996. Multinational enterprise and economic analysis. New York: Cambridge University Press.

Chan, C., & Makino, S. (2007). Legitimacy and multi-level institutional environments: Implications for foreign subsidiary ownership structure. Journal of International Business Studies, 38(4), 621-638.

Chari, M., & Chang, K. (2009). Determinants of the share of equity sought in cross-border acquisitions. Journal of International Business Studies, 40(8), 1277–1297

Chen, S. (2008). The motives for international acquisitions: Capability procurements, strategic considerations, and the role of ownership structures. Journal of International Business Studies, 39(3), 454-471.

Chen, S. F. S., & Hennart, J. F. (2004). A hostage theory of joint ventures: why do Japanese investors choose partial over full acquisitions to enter the United States? Journal of Business Research, 57(10), 1126-1134.

Chiswick, B. R., & Miller, P. W. (1998). Census language questions in North America. Journal of Economic and Social Measurement, 25(2), 73-95.

Cuervo-Cazurra, A. (2016). Multilatinas as sources of new research insights: The learning and escape drivers of international expansion. Journal of Business Research, 69(6), 1963-1972.

Cuervo-Cazurra, A., & Dau, L. A. (2009). Promarket reforms and firm profitability in developing countries. Academy of Management Journal, 52(6), 1348-1368.

Cuervo-Cazurra, A., & Genc, M. (2008). Transforming disadvantages into advantages: Developing-country MNEs in the least developed countries. Journal of International Business Studies, 39(6), 957-979.

Dikova, D., & Van Witteloostuijn, A. (2007). Foreign direct investment mode choice: entry and establishment modes in transition economies. Journal of international business studies, 38(6), 1013-1033.

Eden, L., & Miller, S. R. (2004). Distance matters: Liability of foreignness, institutional distance and ownership strategy. In " Theories of the Multinational Enterprise: Diversity, Complexity and Relevance" (pp. 187-221). Emerald Group Publishing Limited.

Falaster, C. & Ferreira, MP. (2017) The Effects of Pervasive and Arbitrary Institutional Inefficiencies on the Ownership Acquired in Cross-Border Acquisitions. Artigo apresentado no EnAnpad 2017. Anais do EnAnpad 2017. São Paulo, Brasil.

Ferreira, M. (2008). Building and leveraging knowledge capabilities through cross-border acquisitions. In Tallman, S. (Ed.), New Generation in International Strategy. New York, NY: Edward Elgar Publishing.

Ferreira, M. P., & Serra, F. R. (2015). Abordagem conceitual às estratégias de internacionalização sobre pressões institucionais duais para legitimidade e conformidade. Revista de Administração Contemporânea-RAC, 19(4).

Ferreira, M., Vicente, S., Borini, F., & Almeida, M. (2017). Degree of equity ownership in cross-border acquisitions of Brazilian firms by multinationals: a strategic response to institutional distance. Revista de Administração. 52(1), 59-69.

Fortwengel, J. (2017). Understanding when MNCs can overcome institutional distance: A research agenda. Management International Review, 57(6), 793-814.

Gama, M.A.B., Lana, J., Calixto, C.V., & Bandeira-de-Mello, R. (2016). Internacionalização de business group: a escolha do país de destino pela distância institucional. Revista Brasileira de Gestão de Negócios, 18(61).

Gatignon, H., & Anderson, E. (1988). The multinational corporation’s degree of control over foreign subsidiaries: An empirical test of a transaction cost explanation. Journal of Law, Economics & Organization, 4(2), 305–336.

Gaur, A. S., & Lu, J. W. (2007). Ownership strategies and survival of foreign subsidiaries: Impacts of institutional distance and experience. Journal of management, 33(1), 84-110.

Ghemawat, P. (2001). Distance still matters. Harvard business review, 79(8), 137-147.

Guler, I., & Guillén, M. F. (2010). Institutions and the internationalization of US venture capital firms. Journal of International Business Studies, 41(2), 185-205.

Hair, J. F. Jr., Anderson, R. E., Tatham, R. L. & Black, W. C. (1995). Multivariate Data Analysis (3rd ed). New York: Macmillan.

Hayward, M.L.A. (2002) ‘When do firms learn from their acquisition experience? Evidence from 1990 to 1995’, Strategic Management Journal 23(1): 21–39.

Henisz, W. J. (2000). The institutional environment for multinational investment. The Journal of Law, Economics, and Organization, 16(2), 334-364.

Henisz, W. J., & Delios, A. (2000). Learning about the institutional environment. In The new institutionalism in strategic management (pp. 339-372). Emerald Group Publishing Limited.

Henisz, W. J., & Williamson, O. E. 1999. Comparative economic organization – Within and between countries. Business and Politics, 1(3): 261–277.

Hennart, J. F., & Larimo, J. (1998). The impact of culture on the strategy of multinational enterprises: does national origin affect ownership decisions?. Journal of International Business Studies, 29(3), 515-538.

Hernandez, V., & Nieto, M. J. (2015). The effect of the magnitude and direction of institutional distance on the choice of international entry modes. Journal of World Business, 50.

Hofstede, G. (1991). Cultures and organizations. Intercultural cooperation and its importance for survival. Software of the mind. London: Mc Iraw-Hill.

Hymer, S. (1960). The international operations of national firms: a study of Direct Investment, unpublished Ph. D (Doctoral dissertation, dissertation. Massachusetts Institute of Technology).

Inglehart, R., & Baker, W. E. (2000). Modernization, cultural change, and the persistence of traditional values. American sociological review, 19-51.

Khanna, T., & Palepu, K. (2000). Is group affiliation profitable in emerging markets? An analysis of diversified Indian business groups. The Journal of Finance, 55(2), 867-891.

King, D. R., Dalton, D. R., Daily, C. M., & Covin, J. G. (2004). Meta‐analyses of post‐acquisition performance: Indications of unidentified moderators. Strategic management journal, 25(2), 187-200.

Kogut, B. (1988). Joint ventures: Theoretical and empirical perspectives. Strategic management journal, 9(4), 319-332.

Kogut, B., & Singh, H. (1988). The effect of national culture on the choice of entry mode. Journal of international business studies, 19(3), 411-432.

Kostova, T. (1999). Transnational transfer of strategic organizational practices: A contextual perspective. Academy of Management Review, 24.

Kostova, T., & Roth, K. (2002). Adoption of an organizational practice by subsidiaries of multinational corporations: Institutional and relational effects. Academy of management journal, 45(1), 215-233

Kraus, S., Ambos, T. C., Eggers, F., & Cesinger, B. (2015). Distance and perceptions of risk in internationalization decisions. Journal of Business Research, 68(7), 1501-1505.

Luo, Y., & Tung, R. L. (2007). International expansion of emerging market enterprises: A springboard perspective. Journal of International Business Studies, 38(4), 481-498.

Malhotra, S., Lin, X., & Farrell, C. (2016). Cross-national uncertainty and level of control in cross-border acquisitions: A comparison of Latin American and US multinationals. Journal of Business Research, 69(6), 1993-2004.

Meyer, K., Ding, Y., Li, J., & Zhang, H. (2014). Overcoming distrust: How state-owned enterprises adapt their foreign entries to institutional pressures abroad. Journal of International Business Studies, 45(8), 1005-1028.

Meyer, K., Estrin, S., Bhaumik, S., & Peng, M. (2009). Institutions, resources, and entry strategies in emerging economies. Strategic Management Journal, 30(1), 61-80.

Miller, D. (1979). Strategy, structure and environment: Context influences upon some bivariate associations. Journal of Management Studies, 16(3), 294-316.

Mintzberg, H., Ahlstrand, B., & Lampel, J. (2010). Safári de estratégia: um roteiro pela selva do planejamento estratégico. 2. ed. Porto Alegre: Bookmann.

Nadolska, A., & Barkema, H. G. (2007). Learning to internationalise: the pace and success of foreign acquisitions. Journal of International Business Studies, 38(7), 1170-1186.

North, D. C. (1991). Institutions. Journal of economic perspectives, 5(1), 97-112.

Oxley, J. E., & Yeung, B. (2001). E-commerce readiness: Institutional environment and international competitiveness. Journal of International Business Studies, 32(4), 705-723.

Peng, M. W., Sun, S. L., Pinkham, B., & Chen, H. (2009). The institution-based view as a third leg for a strategy tripod. Academy of Management Perspectives, 23(3), 63-81.

Pinto, C. F., Ferreira, M. P., Falaster, C., Fleury, M. T. L., & Fleury, A. (2017). Ownership in cross-border acquisitions and the role of government support. Journal of World Business, 52(4), 533-545.

Porta, R. L., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (1998). Law and finance. Journal of political economy, 106(6), 1113-1155.

Slangen, A. H., & Hennart, J. F. (2008). Do multinationals really prefer to enter culturally distant countries through greenfields rather than through acquisitions? The role of parent experience and subsidiary autonomy. Journal of International Business Studies, 39(3), 472-490.

Vermeulen, F. and Barkema, H.G. (2001) ‘Learning through acquisitions’, Academy of Management Journal 44(3): 457–476.

Werner, S. (2002). Recent developments in international management research: A review of 20 top management journals. Journal of Management, 28(3), 277-305.

Whitley, R. (1992). Business systems in East Asia: Firms, markets and societies. Sage.

Wolf, C., & Weinschrott, D. (1973). International Transactions and Regionalism: Distinguishing" insiders" from" outsiders". The American Economic Review, 63(2), 52-60.

Zaheer, S. (1995). Overcoming the liability of foreignness. Academy of Management journal, 38(2), 341-363.

Zaheer, S., & Zaheer, A. (1997). Country effects on information seeking in global electronic networks. Journal of International Business Studies, 28(1), 77-100.




DOI: http://dx.doi.org/10.18568/internext.v14i3.470

Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM

Apontamentos

  • Não há apontamentos.




Direitos autorais 2019 Internext

Licença Creative Commons
Esta obra está licenciada sob uma licença Creative Commons Atribuição - Não comercial - Compartilhar igual 4.0 Internacional.

Desenvolvido por:

Logomarca da Lepidus Tecnologia

INTERNEXT (e-ISSN: 1980-4865)

ESPM | Escola Superior de Propaganda e Marketing 

Licença Creative Commons
Este obra foi licenciado sob uma Licença Creative Commons Atribuição 3.0 Não Adaptada.


Rua: Dr. Álvaro Alvim, 123 - Vila Mariana - São Paulo - SP - Cep: 04018-010 - e-mail: internext@espm.br

Indexadores e Diretório: