scholarly journals Surviving after Cross-Border Acquisitions: How Business Relatedness, Host Country Experience, and Cultural Distance Affect Acquired Firms

2020 ◽  
Vol 12 (17) ◽  
pp. 6721
Author(s):  
Ilaria Galavotti ◽  
Daniele Cerrato ◽  
Franca Cantoni
Keyword(s):  
Host Country ◽  
Absorptive Capacity ◽  
Home Country ◽  
Cultural Distance ◽  
Research Question ◽  
Cross Border ◽  
Knowledge Based ◽  
Antecedent Conditions ◽  
Country Level ◽  
Target Firms

The effects of cross-border acquisitions on the survival of target firms is attracting increasing academic interest. Specifically, whether cross-border acquisitions may hamper target firms’ performance or enhance their sustainable competitiveness represents a highly debated research question. Building on the knowledge-based perspective of mergers and acquisitions, this paper directs attention to absorptive capacity and investigates the likelihood of survival of target firms acquired by foreign investors. In particular, it examines the role played by three potential antecedent conditions of an acquiring firm’s absorptive capacity on the probability of the target firm’s survival: (a) The business relatedness between acquirer and target, (b) previous experience of the acquirer in the host country, and (c) the cultural distance between the countries of the acquiring and acquired firms. Based on a sample of 396 Italian firms acquired by foreign multinationals, results suggest that target firms are more likely to survive in case the acquirer benefits from previous country-level experience and in case of business relatedness, while the cultural distance between the home country of the acquiring firm and Italy does not prove to be a significant determinant of survival versus mortality of acquired subsidiaries. Overall, our analysis confirms that context familiarity, in terms of both country and business contexts, plays a fundamental role in determining the sustainable competitiveness of acquired firms.

Evaluating Foreign Direct Investment Projects

2018 ◽  
pp. 193-239
Keyword(s):  
Foreign Direct Investment ◽  
Host Country ◽  
Direct Investment ◽  
Home Country ◽  
Investment Project ◽  
Cash Flows ◽  
Parent Company ◽  
Investment Projects ◽  
Country Level ◽  
At Home

As explained in the foregoing chapter, once the relevant cash outflows and inflows associated with a foreign direct investment project are estimated so as to calculate the net cash flows, the desirability of the investment project should then be determined in terms of its economic profitability. Therefore, in this chapter the methods widely used in evaluating investment projects are discussed and their advantages as well as shortcomings are highlighted. Later in the chapter, evaluating foreign direct investment projects from the viewpoint of the parent company is elaborated in terms of profit and/or income transferred to the home country. The same investment evaluation techniques were applied to the net cash flows transferred to the home country of the parent company. The possible income and/or dividends to be remitted to the home country of a parent company are identified and discussed so as to reflect the viewpoints of investing parent companies when planning foreign direct investments. This two-level evaluation approach is generally followed in practice to make sure that direct investments are profitable at both host and home country levels, since an investment project that is not profitable at host country level would not be profitable at home country level either or a project that is profitable at host country level may not be profitable at home country level.

Do consumers support the cross-border charitable activities as the same?

2020 ◽  
Vol 11 (3) ◽  
pp. 441-458
Author(s):  
Zelin Tong ◽  
Tingting Li ◽  
Wenting Feng ◽  
Yuanyuan Zhou ◽  
Ling Zhou
Keyword(s):  
Social Identity ◽  
Host Country ◽  
Home Country ◽  
Identity Transformation ◽  
Extensive Literature ◽  
Content Type ◽  
Cross Border ◽  
National Power ◽  
Charitable Activities ◽  
The Impact

Purpose This study aims to investigate the impact of cross-border charitable activities on host- and home-country consumers based on the social identity theory. Design/methodology/approach Through an extensive literature review and two experimental designs, this study establishes the research framework and hypothesises the relationships between the constructs. Findings National power moderates the impact of cross-border charitable activities on host- and home-country consumers. In particular, compared to countries with high national power, countries with low national power undertaking cross-border charitable activities will receive more positive reactions from the host-country consumers, and, conversely, more negative reactions from the home-country consumers. Research limitations/implications From the consumer perspective, this study finds that brand cross-border charitable activities have different influences on consumers in different countries because of an identity transformation mechanism that exists between the “insiders” and the “outsiders”, which is different from the assumptions of western theories. Practical implications The findings provide insights for undertaking brand cross-border charitable activities. Originality/value Previous studies, which are based on social identity categorisation, assume that cross-border charitable activities have a more positive impact on home-country consumers than host-country consumers. However, this study adopts the research paradigm of social identity relationisation and draws an opposite conclusion, which not only expands the theory of local intergroup interaction, but also clarifies how brand cross-border charitable activities influence Chinese consumers.

scholarly journals The Effects of Cross-Border E-Commerce Platforms on Transnational Digital Entrepreneurship

2022 ◽  
Vol 30 (2) ◽  
pp. 1-19
Author(s):  
Carson Duan ◽  
Bernice Kotey ◽  
Kamaljeet Sandhu
Keyword(s):  
Data Analysis ◽  
New Zealand ◽  
Host Country ◽  
Home Country ◽  
Chinese Immigrant ◽  
Entrepreneurial Ecosystem ◽  
Cross Border ◽  
Digital Ecosystem ◽  
Immigrant Entrepreneurs ◽  
Digital Entrepreneurship

This research examines the important concept of transnational digital entrepreneurship (TDE). The paper integrates the host and home country entrepreneurial ecosystems with the digital ecosystem to the framework of the transnational digital entrepreneurial ecosystem. The authors argue that cross-border e-commerce platforms provide critical foundations in the digital entrepreneurial ecosystem. Entrepreneurs who count on this ecosystem are defined as transnational digital entrepreneurs. Interview data were dissected for the purpose of case studies to make understanding from twelve Chinese immigrant entrepreneurs living in Australia and New Zealand. The results of the data analysis reveal that cross-border entrepreneurs are in actual fact relying on the significant framework of the transnational digital ecosystem. Cross-border e-commerce platforms not only play a bridging role between home and host country ecosystems but provide entrepreneurial capitals as digital ecosystem promised.

Human resource management transfer challenges within multinational firms

2018 ◽  
Vol 41 (7) ◽  
pp. 860-877 ◽  
Author(s):  
Nana Yaw Oppong
Keyword(s):  
Resource Management ◽  
Human Resource Management ◽  
Human Resource ◽  
Host Country ◽  
Multinational Firms ◽  
Home Country ◽  
Parent Company ◽  
Content Type ◽  
Cross Border ◽  
Best Fit

Purpose The paper aims to trace the challenges that multinational companies (MNCs) face as they grow out of their national borders into foreign countries and how they attempt to transfer human resource management (HRM) policies and practices across their subsidiaries for a best-fit HRM model. Design/methodology/approach The paper uses the dilemma theory (involving two opposing values which doing one without the other creates a disadvantage but both cannot be done together) as the main analytical tool and reviews scholarly literature on MNCs’ HRM transfers for the assessment of the transfer challenges. Findings It is found that MNCs face a dilemma as to how to find best-fit between home-country HRM requirements and host-country demands. In the face of this dilemma, MNCs attempt to build synergy between home-country requirements and host-country demands for a best-fit HRM that is beneficial to both the parent company and their foreign subsidiaries. Despite the best-fit HRM practices to diffuse the tension, parent company has greater influence in the final synergy product which is the trade-off between home-country HRM label and host-country contextual demands, thereby advancing the dominant HRM option of the dilemma. Practical implications MNCs should be aware of the possible challenges as they internationalise and should equally be aware that though they may build a synergy (a blend of workable headquarters and subsidiary HRM), the final product will continue to favour headquarters’ HRM policies and practices. Originality/value The paper generates theoretical implications into the issues and challenges that arise with HRM transfers within multinational firms by examining how the dilemma theory sheds light on the transfer process and challenges from the dominant-contextual tension till the fight for best-fit HRM. It also contributes to the development of cycle of cross-border HRM dilemma, cross-border HRM transfer framework and Synergy-Dominant theory.

scholarly journals Confucius Institute and the Completion of Chinese Cross-Border Acquisitions

2019 ◽  
Vol 11 (18) ◽  
pp. 5088 ◽  
Author(s):  
Ouyang ◽  
Li
Keyword(s):  
Cultural Distance ◽  
Macro Level ◽  
Host Countries ◽  
Firm Level ◽  
Confucius Institute ◽  
Cross Border ◽  
Country Level ◽  
Using Data ◽  
Global Platform

As a global platform for cultural exchange, the Confucius Institute (CI) has effectively promoted sustainable development among countries and regions. However, existing literature has mostly drawn insights from the national macro-level to study the roles played by CIs, whereas the potential of CIs to influence corporate behaviors has not received extensive attention. This study expands the research on CIs from the national macro-level to the enterprise micro-level by exploring the effect of CIs on the likelihood of acquisition completion. Using data from 1695 Chinese cross-border acquisitions from 2006 to 2017, we find that establishment of CIs can significantly increase acquisition completion likelihood. Furthermore, the level of influence of CIs on acquisition completion depends on country- and firm- level factors. At the country level, the positive effect of CIs on completion likelihood intensifies when cultural distance between host countries and China is great. At the firm level, the acquirer’s past cross-border acquisition experience moderates the effects of CIs, which are more beneficial to firms with no previous successes. In addition, we have made some further analyses, and find that the presence of CIs not only helps to increase the likelihood of acquisitions completion, but also helps to shorten the acquisition durations. The role of CIs in cross-border acquisition completion likelihood do not depend on the types of Chinse enterprises, which indicates that CIs, unlike government agencies, do not offer additional help for SOEs.

The Effects of Cross-border e-Commerce Platforms on Transnational Digital Entrepreneurship

2022 ◽  
Vol 30 (2) ◽  
pp. 0-0
Keyword(s):  
Data Analysis ◽  
New Zealand ◽  
Host Country ◽  
Home Country ◽  
Chinese Immigrant ◽  
Entrepreneurial Ecosystem ◽  
Cross Border ◽  
Digital Ecosystem ◽  
Immigrant Entrepreneurs ◽  
Digital Entrepreneurship

This research examines the important concept of transnational digital entrepreneurship (TDE). The paper integrates the host and home country entrepreneurial ecosystems with the digital ecosystem to the framework of the transnational digital entrepreneurial ecosystem. The authors argue that cross-border e-commerce platforms provide critical foundations in the digital entrepreneurial ecosystem. Entrepreneurs who count on this ecosystem are defined as transnational digital entrepreneurs. Interview data were dissected for the purpose of case studies to make understanding from twelve Chinese immigrant entrepreneurs living in Australia and New Zealand. The results of the data analysis reveal that cross-border entrepreneurs are in actual fact relying on the significant framework of the transnational digital ecosystem. Cross-border e-commerce platforms not only play a bridging role between home and host country ecosystems but provide entrepreneurial capitals as digital ecosystem promised.

Expatriation as a Bridge Over Troubled Water: A Knowledge-Based Perspective Applied to Cross-Border Acquisitions

2005 ◽  
Vol 26 (10) ◽  
pp. 1455-1476 ◽  
Author(s):  
Louis Hébert ◽  
Philippe Very ◽  
Paul W. Beamish
Keyword(s):  
Host Country ◽  
Organizational Knowledge ◽  
Cross Border ◽  
Knowledge Based ◽  
Acquisition Integration ◽  
Expatriate Managers ◽  
The Impact ◽  
The Relationship

Do expatriate managers fulfil the role of ‘value-seeking connectors’ in cross-border acquisitions? Building from the organizational knowledge and the MNC literature, this paper focuses on the use of expatriate managers for transferring experience-based knowledge within the MNC and its impact on the survival of acquired subsidiaries. Using a sample of cross-border acquisitions by Japanese MNCs, we analysed the impact of expatriate managers on the relationship between the acquirer’s industry, host country and acquisition experience and the survival of the acquired subsidiary. Results show that the contribution of expatriation to the acquired firm’s survival varies considerably depending on the type of experience considered. In fact, connectivity through expatriation is costly and only when appropriately sent abroad do expatriate managers build an effective bridge over the troubled water that characterizes the challenging post-acquisition integration.

Cross-border Distribution of Collective Investment Products in the EU

2018 ◽  
Author(s):  
Matteo Gargantini ◽  
Carmine Di Noia ◽  
Georgios Dimitropoulos
Keyword(s):  
Home Country ◽  
Legal Framework ◽  
Business Rules ◽  
Investment Funds ◽  
Legal Rules ◽  
Section 8 ◽  
Cross Border ◽  
Product Regulation ◽  
Supervisory Practices ◽  
The Eu

This chapter analyzes the current regulatory framework for cross-border distribution of investment funds and submits some proposals to improve it. The chapter is organized as follows. Section 2 provides a schematic description of the legal taxonomy for collective investment schemes. Section 3 addresses the EU disclosure regimes that apply to the distribution of various types of investment funds. Sections 4 and 5 consider conduct-of-business rules and, respectively, the legal framework for the allocation of supervisory powers on product regulation when fund units are distributed in more than one country. Section 6 provides some data that help assess the performance of the current framework for cross-border distribution. It then analyzes some of the residual legal rules and supervisory practices that still make cross-border distributions of funds more burdensome than purely national distributions, whether these restrictions are set forth in the country where investors are domiciled (Section 7) or in the fund's home country (Section 8).

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