Learning Before Making the Big Leap

B. Elango () and Chinmay Pattnaik
Additional contact information
B. Elango: College of Business, Illinois State University
Chinmay Pattnaik: University of Sydney

Management International Review, 2011, vol. 51, issue 4, No 2, 481 pages

Abstract: Abstract In the past two decades, emerging market countries have opened their markets, resulting in increasing competition from foreign firms. To cope with the influx of new competition, these firms need to develop skills and competencies on par with their new international rivals. One of the strategies employed by firms in these markets is the use of serial acquisitions to build capabilities and has been referred to as the springboard perspective. We use a sample of 175 acquisitions made by Indian firms during the period 2000–2006. Findings support the underlying premise of the study that firms acquire targets serially but of increasing value in a sequential manner to learn and build capabilities. By acquiring targets in this manner, these firms seek to minimize risk as well as optimize their ability to learn from the acquisitions. The results of this study offer broad support for the recently advanced springboard perspective which expands the Uppsala model to include acquisitions. While unconventional, this strategy is a potential option for emerging market firms to acquire competencies to cope with the rapid increase in competitive pressure.

Keywords: Emerging market MNCs; Acquisitions; Internationalization; Springboard perspective; Emerging markets; India (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (44)

Downloads: (external link)
http://link.springer.com/10.1007/s11575-011-0085-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:manint:v:51:y:2011:i:4:d:10.1007_s11575-011-0085-0

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/11575

DOI: 10.1007/s11575-011-0085-0

Access Statistics for this article

Management International Review is currently edited by Michael-Jörg Oesterle and Joachim Wolf

More articles in Management International Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().