UK direct investment in the United States: a mode of entry analysis

Nisbet, Peter; Thomas, Wayne E.; Barrett, Stuart

doi:10.1080/1357151032000126229

Cited by 9 publications

(8 citation statements)

References 8 publications

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“…This implies that domestic firms are cheaper to acquire by foreign firms. Previous studies (Froot and Stein, 1991; Nisbet et al , 2003) with similar results indicated that strong currency lessens the costs of transaction, and therefore, firm that has its country’s currency depreciated tends to be a target. Although the countries of this ASEAN region made effort in maintaining strong currencies against the US dollars, their exchange rates depreciated substantially following the current plunge in crude oil prices.…”

Section: Resultsmentioning

confidence: 69%

“…However, Froot and Stein (1991) show that as strong currency lessens the costs of transaction and acquisition, firm that has its country’s currency appreciated tends to be an acquirer while the one that has its country’s currency depreciated tends to be a target. Therefore, when foreign currency depreciates relative to domestic currency, we should expect inward acquisitions and exchange rate to be negatively related and outward acquisitions and exchange rate to be positively related (Froot and Stein, 1991; Pablo, 2009; Nisbet et al , 2003).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

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Cross-border merger and acquisition activities in Asia: the role of macroeconomic factors

Ibrahim

Raji

2018

SEF

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Purpose This paper aims to examine the influence of key macroeconomic factors on the inward and outward acquisition activities of six ASEAN (ASEAN: Association of Southeast Asian Nations) countries, namely, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, over the 1996-2015 period. Design/methodology/approach The study uses alternative panel data methods, including pooled mean group, mean group and dynamic fixed-effect estimators. Findings The results indicate that gross domestic product (GDP), interest rate, exchange rate, money supply and inflation rate are the most important macroeconomic factors explaining the trends of cross-border mergers and acquisition outflows of the ASEAN-6 countries. Specifically, GDP, money supply and inflation rate have significant positive relationships with acquisition outflows, while interest rate and exchange rate exert significant negative influence. On the other hand, the authors find four significant macroeconomic factors explaining the trends of the inward acquisitions. Essentially, GDP, money supply and inflation rate have significant positive impacts on inward acquisitions, while the impact of exchange rate is negatively significant. Research limitations/implications Unavailability of data limits this study to pool six sample countries from ASEAN, instead of ten representative member countries. Practical implications The results of this study can signal to firms or investors, involving in cross-border mergers and acquisitions, where to direct foreign resources flows. Moreover, having the knowledge about the relative levels of market size and other macroeconomic factors in both home and host countries can be of great importance for investment decision. Therefore, policymakers of ASEAN countries should make appropriate macroeconomic policies that can stimulate inward and outward acquisitions. Originality/value The main contribution of this paper is that it is the first to present the analysis of macroeconomic influences on the trends of inward and outward merger and acquisition activities in six ASEAN countries.

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Section: Resultsmentioning

confidence: 69%

Section: Theoretical Frameworkmentioning

confidence: 99%

Cross-border merger and acquisition activities in Asia: the role of macroeconomic factors

Ibrahim

Raji

2018

SEF

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“…They have been responsible for building a sound value configuration and for knowledge transfer to the local firms (Saliola and Zanfei, 2009). Such knowledge helps the local firms use various market entry strategies (Nisbet et al , 2003; Narula and Zanfei, 2003) and enhances their participation in the GVC. Even in cases of LDCs, participation of a small local firm in the value chains helps in obtaining information about products, technologies and for gaining market access (Pietrobelli and Rabellotti, 2011).…”

Section: Enablers Of Participation In Global Value Chainmentioning

confidence: 99%

Toward a national participation index for developing countries in the global value chains

Ahmed

Kumar

2018

JM2

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Purpose The purpose of this paper is to identify factors which influence participation of developing countries in the global value chains (GVC) and to present a mathematical modeling technique to calculate a “National Participation Index of a developing country in the GVC” (hereinafter referred to as G-NPI). Design/methodology/approach The paper identifies 17 factors, encompassing both country-specific and firm-specific considerations that influence a developing countries’ participation in the GVCs. These factors have been grouped into four sets of enablers, namely, macroeconomic, geo-economic, strategic and geopolitical. The national participation index (G-NPI) has been calculated using the graph theoretic modeling approach. Findings Besides identifying the factors of a developing country’s participation in the GVC and grouping them as enablers, the paper considers the case of India as an example and assesses the level of interactions within (i.e. among various factors of a given enabler) and among these enablers (leading to a G-NPI value) using graph theory. Practical implications The findings can be used to calculate G-NPI for different countries to ascertain their potential for participation and also to find the factors(s) which may be deterring their participation in the GVCs. Social implications This paper can help in policy advocacy to enhance the competitiveness of developing countries and consequently to improve the life of their consumers. Originality/value This paper introduces the concept of G-NPI and presents a unique way of assessing a developing country’s participation in the GVCs through a mathematical modeling approach.

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“…Many studies of global value chains introduce new insights into the analysis of MNC organization and the increasingly complex ways they link with foreign counterparts. The changing nature of multinationals appears in the development of complementarities between internal networks of subsidiaries and external networks of cooperation with local firms and institutions (Castellani and Zanfei, 2004) and in the choice of alternative governance models for controlling activities including contractual agreements with local counterparts (Giuliani et al , 2005; Nisbet et al , 2003). Many authors (Gereffi et al , 2005) focus on opportunities for local producers to learn from global leaders who upgrade their products and processes and on how the enhancement of suppliers' capabilities allows leading firms to progressively outsource their activities.…”

Section: Mnc and Localization Strategymentioning

confidence: 99%

CSR strategy in multinational firms: focus on human resources, suppliers and community

Chiara

Spena

2011

Journal of Global Responsibility

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According to recent developments in the literature, the spread of corporate social\ud responsibility (CSR) principles would inevitably have a significant impact on foreign activities of\ud multinational corporations (MNCs). Two forces seem to have influenced multinational firms’ behavior:\ud social maturity from international society and cultural evolution of political thought in several\ud developed countries (DCs). The literature has already pointed out the importance of the multinational\ud firm’s function as a moral agent, identifying different components of respect for a sustainability\ud management system. Based on these assumptions, the purpose of this paper is to frame MNCs’\ud behavior within CSR, stressing the importance of a different approach to the management of local\ud resources and stakeholders. The paper will argue for a shift of perspective concerning workers,\ud suppliers and community, from resources to be exploited to partners and co-creators of MNC values.\ud In the research design, the authors use the case method,\ud choosing a multiple case studies research composed of five firms, with three criteria: international\ud firms with an international supply chain, firms with a formalized CSR management and organization\ud process and the accessibility of firm data.\ud In this paper, CSR emerges as the comparative advantage concept that forms the basis of\ud the international distribution of multinational activities, calling for a new theoretical viewpoint that\ud necessitates a rethinking of MNCs’ strategies.\ud MNCs are opening toward responsible and sustainable business strategies.\ud Workers, suppliers and communities represent the true challenge ahead, and the management of\ud relationships with these actors is the starting point for an internationalization in a more integrated\ud ethical and economic view

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UK direct investment in the United States: a mode of entry analysis

Cited by 9 publications

References 8 publications

Cross-border merger and acquisition activities in Asia: the role of macroeconomic factors

Cross-border merger and acquisition activities in Asia: the role of macroeconomic factors

Toward a national participation index for developing countries in the global value chains

CSR strategy in multinational firms: focus on human resources, suppliers and community

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