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.