Abstract
Multinational enterprises often acquire stakes in an existing enterprise when entering emerging economies. This
paper examines the determinants of entry mode choices with a special focus on these partial acquisitions, which
have received little attention in the scholarly literature. We show that partial acquisitions have features that are
distinct from other modes with respect to the transfer of resources to the subsidiary and the determinants of
entry mode choice.
Recent research suggests that a buyer prefers partial acquisitions, when a seller possesses asymmetric
information advantages. However, other studies have suggested that partial acquisition results from sellers'
preference for partial divestment. We propose a different perspective that is grounded in the influence of
stakeholders on the transfer of ownership rights and find that partial acquisitions are preferred when
negotiations are subject to significant stakeholder interference. (For more information, please contact: Kristian
Jakobsen, Copenhagen Business School, Denmark: kj.int@cbs.dk)
| Original language | English |
|---|---|
| Title of host publication | Proceedings of the 49th Annual Meeting of the Academy of International Business : Bringing the Country Back In:The Importance of Local Knowledge in a Global Economy Indianapolis, Indiana, USA June 25-28, 2007 |
| Editors | Oded Shenkar, Tunga Kiyak |
| Number of pages | 36 |
| Publisher | Academy of International Business |
| Publication date | 2007 |
| Publication status | Published - 2007 |
| Event | AIB 2007 Annual Meeting: Bringing the Country Back In: The Importance of Local Knowledge in a Global Economy - Indianapolis, United States Duration: 25 Jun 2007 → 28 Jun 2007 Conference number: 49 http://aib.msu.edu/events/2007/ |
Conference
| Conference | AIB 2007 Annual Meeting |
|---|---|
| Number | 49 |
| Country | United States |
| City | Indianapolis |
| Period | 25/06/2007 → 28/06/2007 |
| Internet address |