Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?

Peter J. Buckley; Surender Munjal; Peter Enderwick; Nicolas Forsans

doi:10.4337/9781786431332.00023

Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?

Peter J. Buckley
, Surender Munjal^*
, Peter Enderwick
, Nicolas Forsans

^*Corresponding author for this work

Leeds University Business School
University of International Business and Economics
Auckland University of Technology
University of Exeter Business School

Research output: Chapter in Book/Published conference output › Chapter

Abstract

This paper examines cross-border acquisitions by Indian multinationals and places them in the context of Emerging Country Multinationals. It tests hypotheses based on internalisation theory and the resource based view to ask if these firms are asset exploiting or asset augmenting in their takeover behaviour. Internal financial and technological resources are found to be important explanatory variables, as is asset seeking; of brands, technology and market access. The home environment in India allows firms to amass profits, to manage in a culturally diverse setting and to develop asset bundling skills. All these factors are significant in determining cross-border acquisitions.

Original language	English
Title of host publication	The Global Factory
Subtitle of host publication	Networked Multinational Enterprises in the Modern Global Economy
Editors	Peter J. Buckley
Publisher	Edward Elgar
Chapter	14
Pages	217-230
Number of pages	14
ISBN (Electronic)	9781786431332
ISBN (Print)	9781786431325
DOIs	https://doi.org/10.4337/9781786431332.00023
Publication status	Published - 23 Feb 2018

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities

Keywords

Asset augmentation
Asset seeking foreign direct investment
Cross-border acquisitions
Firm specific assets
India
Multinationals from emerging countries

Access to Document

10.4337/9781786431332.00023

Cite this

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title = "Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?",

abstract = "This paper examines cross-border acquisitions by Indian multinationals and places them in the context of Emerging Country Multinationals. It tests hypotheses based on internalisation theory and the resource based view to ask if these firms are asset exploiting or asset augmenting in their takeover behaviour. Internal financial and technological resources are found to be important explanatory variables, as is asset seeking; of brands, technology and market access. The home environment in India allows firms to amass profits, to manage in a culturally diverse setting and to develop asset bundling skills. All these factors are significant in determining cross-border acquisitions.",

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Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation? / Buckley, Peter J.; Munjal, Surender; Enderwick, Peter et al.
The Global Factory: Networked Multinational Enterprises in the Modern Global Economy. ed. / Peter J. Buckley. Edward Elgar, 2018. p. 217-230.

Research output: Chapter in Book/Published conference output › Chapter

TY - CHAP

T1 - Cross-border acquisitions by Indian multinationals

T2 - Asset exploitation or asset augmentation?

AU - Buckley, Peter J.

AU - Munjal, Surender

AU - Enderwick, Peter

AU - Forsans, Nicolas

PY - 2018/2/23

Y1 - 2018/2/23

N2 - This paper examines cross-border acquisitions by Indian multinationals and places them in the context of Emerging Country Multinationals. It tests hypotheses based on internalisation theory and the resource based view to ask if these firms are asset exploiting or asset augmenting in their takeover behaviour. Internal financial and technological resources are found to be important explanatory variables, as is asset seeking; of brands, technology and market access. The home environment in India allows firms to amass profits, to manage in a culturally diverse setting and to develop asset bundling skills. All these factors are significant in determining cross-border acquisitions.

AB - This paper examines cross-border acquisitions by Indian multinationals and places them in the context of Emerging Country Multinationals. It tests hypotheses based on internalisation theory and the resource based view to ask if these firms are asset exploiting or asset augmenting in their takeover behaviour. Internal financial and technological resources are found to be important explanatory variables, as is asset seeking; of brands, technology and market access. The home environment in India allows firms to amass profits, to manage in a culturally diverse setting and to develop asset bundling skills. All these factors are significant in determining cross-border acquisitions.

KW - Asset augmentation

KW - Asset seeking foreign direct investment

KW - Cross-border acquisitions

KW - Firm specific assets

KW - India

KW - Multinationals from emerging countries

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ER -

Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?

Abstract

UN SDGs

Keywords

Access to Document

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