Selling to Foreign MNEs

Joanna Scott-Kennel

International Studies of Management & Organization, 2013, vol. 43, issue 1, 52-80

Abstract: Adopting the unconventional viewpoint of the acquired firm, we argue that selling to a multinational enterprise (MNE) addresses gaps in activities and resources already exacerbated by the size and distance of the small advanced economy (SAE). Four New Zealand firms were sampled and a longitudinal qualitative analysis was conducted using secondary data as well as interviews of relevant officials. Evidence reveals that in the short term, foreign ownership provides a timely solution to the problem of simultaneously financing internationalization and development of the acquired firms' activities and resources. In the long term, however, global strategic imperatives of the acquiring MNE prompt rationalization and relocation of local activities and resources. The study concludes that both the decision to sell and the changes to the acquired firms' locally based activities and resources are influenced by the SAE context, but are driven by the need for post-acquisition synergy with the acquiring MNEs' strategies.

Date: 2013
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DOI: 10.2753/IMO0020-8825430103

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