ISBN:
9781784417390
Content:
Emerging market MNEs often seek to advance their domestic competitive advantage through a springboard FDI strategy, which typically takes the form of an acquisition into a developed market (DM) for knowledge resources. We argue that if this strategy is effective and beneficial, then an emerging market parent firm would seek for higher ownership and control in its later domestic acquisitions. Such benefits would be higher if there are richer knowledge resources in a DM subsidiary or in a DM local network. Such benefits would also increase over time because of the accumulation of new knowledge back home. Using a sample of 1,303 complete domestic acquisitions made by 713 Turkish firms over the period of 1987–2013, including 196 deals involving a springboard FDI strategy, we have found highly supportive empirical evidence. It is found that holding a DM subsidiary by a Turkish parent firm is associated with 33.047% higher ownership in a later domestic acquisition. Both research and practical implications are discussed.
In:
Emerging economies and multinational enterprises, United Kingdom : Emerald, 2015, (2015), Seite 503-528, 9781784417390
In:
Emerald Group Publishing Limited
In:
year:2015
In:
pages:503-528
Language:
English
DOI:
10.1108/S1571-502720150000028021
URL:
Volltext
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