International expansion through start-up or through acquisition: An organizational learning perspective
This study brings a fresh approach--a learning perspective--to the literature examining whether firms expand internationally through start-ups or acquisitions. Hypotheses concern how this strategic choice is influenced by a firm's multinational diversity and product diversity. The results show that multinational diversity leads to foreign start-ups rather than acquisitions. Product diversity has a curvilinear effect on the tendency to use start-ups. The curvilinear effect becomes weaker at higher levels of multinational diversity.
|Keywords||business planning, consolidation & merger of corporations, corporations (growth), diversification in industry, diversity in the workplace, foreign investment, gross national product, international business enterprises, international trade financing, multiproduct firms, organizational learning, strategic planning|
|Series||ERIM Top-Core Articles|
|Journal||Academy of Management Journal|
Barkema, H.G, & Vermeulen, G.A.M. (1998). International expansion through start-up or through acquisition: An organizational learning perspective. Academy of Management Journal, 7–26. Retrieved from http://hdl.handle.net/1765/12824