Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?

Peter J. Buckley, Surender Munjal, Peter Enderwick and Nicolas Forsans

International Business Review, 2016, vol. 25, issue 4, 986-996

Abstract: This paper examines cross-border acquisitions by Indian multinationals and places them in the context of Emerging Country Multinationals. It tests hypotheses based on internalisation theory and the resource based view to ask if these firms are asset exploiting or asset augmenting in their takeover behaviour. Internal financial and technological resources are found to be important explanatory variables, as is asset seeking; of brands, technology and market access. The home environment in India allows firms to amass profits, to manage in a culturally diverse setting and to develop asset bundling skills. All these factors are significant in determining cross-border acquisitions.

Keywords: Firm specific assets; Asset augmentation; Cross-border acquisitions; India; Multinationals from emerging countries; Asset seeking foreign direct investment (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (38)

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DOI: 10.1016/j.ibusrev.2015.10.006

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