TY - JOUR
T1 - Experience and Cross-Border Acquisitions: An Organizational Learning Perspective
AU - Galavotti, Ilaria
AU - Cerrato, Daniele
AU - Depperu, Donatella
PY - 2017
Y1 - 2017
N2 - Building on organizational learning theory, and notably on the notion of strategic momentum, we examine the antecedents of cross-border acquisitions, with a specific focus on the effect of experience. In particular, we unbundle firm experience into domestic and cross-border acquisition experience. Using data on 763 acquisitions in the period 2007-2013, our results show the existence of a U-shaped relationship between domestic acquisition experience and the likelihood of cross-border acquisitions: acquisition experience in the domestic market is negatively related to subsequent international M&A activity up to a certain level, after which accumulation of experience in the domestic market generates process-related capabilities that encourage subsequent cross-border acquisitions. Empirical support is provided for an inverted U-shaped relationship between prior cross-border acquisition experience and the likelihood of subsequent cross-border acquisitions: such experience encourages further acquisitions up to the point at which the coordination costs discourage further international expansion.
AB - Building on organizational learning theory, and notably on the notion of strategic momentum, we examine the antecedents of cross-border acquisitions, with a specific focus on the effect of experience. In particular, we unbundle firm experience into domestic and cross-border acquisition experience. Using data on 763 acquisitions in the period 2007-2013, our results show the existence of a U-shaped relationship between domestic acquisition experience and the likelihood of cross-border acquisitions: acquisition experience in the domestic market is negatively related to subsequent international M&A activity up to a certain level, after which accumulation of experience in the domestic market generates process-related capabilities that encourage subsequent cross-border acquisitions. Empirical support is provided for an inverted U-shaped relationship between prior cross-border acquisition experience and the likelihood of subsequent cross-border acquisitions: such experience encourages further acquisitions up to the point at which the coordination costs discourage further international expansion.
KW - Acquisition experience
KW - Cross-border acquisitions
KW - Domestic acquisitions
KW - Organizational learning
KW - Acquisition experience
KW - Cross-border acquisitions
KW - Domestic acquisitions
KW - Organizational learning
UR - http://hdl.handle.net/10807/105131
UR - http://onlinelibrary.wiley.com/journal/10.1002/(issn)1740-4762
U2 - 10.1111/emre.12094
DO - 10.1111/emre.12094
M3 - Article
SN - 1740-4754
VL - 14
SP - 119
EP - 131
JO - European Management Review
JF - European Management Review
ER -