EconPapers    
Economics at your fingertips  
 

The takeover selection decisions of multinational enterprises: empirical evidence from European target firms

Andrea Ascani ()

Journal of Economic Geography, 2018, vol. 18, issue 6, 1227-1252

Abstract: This article studies the selection patterns of takeover decisions taken by multinational enterprises (MNEs) by analysing the characteristics of acquisition targets. Drawing on the evolutionary economic geography and the international business literatures, our conceptual framework emphasises key micro-level factors influencing cross-border takeovers, such as the global search of MNEs for novel firm-specific knowledge, their cost-reduction behaviour and the heterogeneity of routines among potential target firms. The mediating role of the technological and the regional institutional contexts of target firms is also considered. Using data on a large sample of European target firms for 1997–2013, our results support a process of selection whereby MNEs acquire underperforming firms that developed valuable organisational and cognitive routines, as a strategy to access novel knowledge bases while reducing the cost of purchasing foreign assets.

Keywords: Cross-border acquisitions; multinational enterprises; globalisation (search for similar items in EconPapers)
JEL-codes: F23 F60 G34 B52 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1093/jeg/lbx035 (application/pdf)
Access to full text is restricted to subscribers.

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:oup:jecgeo:v:18:y:2018:i:6:p:1227-1252.

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Journal of Economic Geography is currently edited by Diego PugaEditor-Name: Neil Wrigley

More articles in Journal of Economic Geography from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2020-01-15
Handle: RePEc:oup:jecgeo:v:18:y:2018:i:6:p:1227-1252.