Learning by doing: Cross-border mergers and acquisitions

We rely on organizational learning theory and strategic momentum research to examine the international merger and acquisition (M&A) activities of a sample of S&P 500 firms. We hypothesize that the learning associated with a firm's prior acquisition experience increases the likelihood th...

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Bibliographic Details
Published in:Journal of business research 2009-12, Vol.62 (12), p.1329-1334
Main Authors: Collins, Jamie D., Holcomb, Tim R., Certo, S. Trevis, Hitt, Michael A., Lester, Richard H.
Format: Article
Language:English
Subjects:
Acquisitions
Acquisitions & mergers
Acquisitions Cross-border Organizational learning Momentum
Border regions
Cross border transactions
Cross-border
Foreign direct investment
Globalization
Host country
Mergers
Momentum
Multinational enterprises
Organizational learning
Studies
Transnationalism
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Summary:We rely on organizational learning theory and strategic momentum research to examine the international merger and acquisition (M&A) activities of a sample of S&P 500 firms. We hypothesize that the learning associated with a firm's prior acquisition experience increases the likelihood the firm will engage in subsequent international acquisitions. Results from a sample including company–country level data indicate that both prior domestic acquisitions and international acquisitions influence the likelihood of acquisitions in foreign markets by U.S.-based firms. We also find that prior experience with international acquisitions is more predictive of subsequent international acquisitions than prior domestic acquisition experience. Moreover, we find that the acquisition experience within a host country had a stronger influence on subsequent acquisitions within that country than other prior non-host country international acquisition experiences.
ISSN:0148-2963
1873-7978
DOI:10.1016/j.jbusres.2008.11.005