Motivations of Cross-border Acquisitions and Review of Current Empirical Studies on Knowledge Acquisition and Performance in Their Formation
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The heart of international business conversation lies in competitive pressure for internationalization and it is especially widely credited for promoting cross-border acquisitions(CBAs) as an important strategic option in current times. Although the prevalence of the strategy is highlighted, it has in fact received relatively scant attention in the scholarly literature on international business and has been heavily analyzed only in the fields of organization science, finance and financial economics. For these reasons, little is known about the process of knowledge acquisition and learning mechanisms within cross-border acquisitions. In addition, as the emphasis of previous studies tends to be merely on wealth creation, research on performance evaluation has not kept pace with this strategic prevalence in the global market. Recognizing the problem, this paper attempts to seek insights into CBAs and suggests avenues for future research by reviewing current empirics.
Abstract
The heart of international business conversation lies in competitive pressure for internationalization and it is especially widely credited for promoting cross-border acquisitions(CBAs) as an important strategic option in current times. Although the prevalence of the strategy is highlighted, it has in fact received relatively scant attention in the scholarly literature on international business and has been heavily analyzed only in the fields of organization science, finance and financial economics. For these reasons, little is known about the process of knowledge acquisition and learning mechanisms within cross-border acquisitions. In addition, as the emphasis of previous studies tends to be merely on wealth creation, research on performance evaluation has not kept pace with this strategic prevalence in the global market. Recognizing the problem, this paper attempts to seek insights into CBAs and suggests avenues for future research by reviewing current empirics.
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