A resource dependence perspective of EMNE FDI strategy

Cross-border mergers and acquisitions by emerging market firms: A comparative investigation

“…As local firms usually possess resources such as customers, channel controls, key supply sources, and relationships with regulators that cannot easily be replicated in the short term, EMFs can be motivated, to some extent, to stabilize and control the flow of such resources. On top of that, in an effort to exclude rivals, EMFs acquiring local firms who control limited but critical resources can gain more market power through the erection of entry barriers to block or restrict the entry of competitors (Gaffney, Kedia, & Clampit, 2013;Shimizu, Hitt, Vaidyanath, & Pisano, 2004). In addition, due to intense domestic competition and market dominance by some powerful players, EMFs are often unable to obtain sufficient market shares at home.…”

“…On top of that, large markets are also associated with agglomeration economies that can reduce the costs for all producers in that market (Dunning, 2009). From a resource dependence lens, the market represents a pool of resources that EMFs can leverage to engage in M&As, through asset, information, and legitimacy flows, thereby increasing the possibility of M&A deals (Gaffney et al, 2013;Karney, 2012). As the financial wealth of the country is positively associated with the ability of EMFs to create firm-specific advantages, which have been identified as necessary to international acquisitions (Dunning, 1995;Kyrkilis & Pantelidis, 2003;Sun, Peng, Ren, & Yan, 2012), there are increasingly studies that have included financial market size as an important determinant of cross-border M&As from emerging economies.…”

The 45 years of foreign direct investment research: Approaches, advances and analytical areas

“…The presence of literature which evaluates the impact of FDI on home countries is fairly substantial (e.g., Anwar & Nguyen, ; Bergsten, Horst, & Moran, ; Bhasin & Paul, ; Dunning, ; Horst, ; Mudambi & Mudambi, ; Rugman, , ). In the recent years, outward foreign direct investment (OFDI) has attracted increasing attention among researchers, policymakers and transnational corporations headquartered in emerging markets, especially in the BRIC (Brazil, Russia, India and China) countries (Gaffney, Kedia, & Clampit, ; Hattari & Rajan, ; Sauvant, ). Econometric literature on the host country determinants of FDI also exists in significant quantity and they argue that the countries which attract FDI are those which have good institutions.…”

Sources of Dependence and Strategies to Innovate: Evidence from Video Game SMEs

“…Physical resources entail fixed capacity, such as plants, industrial equipment, raw materials, product, stock, property, and stores. Often characterized as valuable, rare, inimitable, and 4 Such applications include the role of technology (e.g., Dunford 1987;Katila, Rosenberger, and Eisenhardt 2008), how dependence affects internationalization strategies (e.g., Gaffney, Kedia, and Clampit 2013), merger and acquisition settings (e.g., Casciaro and Piskorski 2005;Finklestein 1997;Xia and Li 2013), network strategies (e.g., Gulati 2007;Westphal, Boivie, and Chang 2006), and the performance and composition of boards (e.g., Hillman 2005; Hillman, Shropshire, and Cannella 2007). 5 We use "resource" not in the strict sense of the resource-based view (Teece 1982) but rather more broadly (Lavie 2006).…”