Partial Acquistion as an Entry Mode in Transition Economies

Kristian Jakobsen, Klaus E. Meyer

    Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

    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 languageEnglish
    Title of host publicationProceedings 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
    EditorsOded Shenkar, Tunga Kiyak
    Number of pages36
    PublisherAcademy of International Business
    Publication date2007
    Publication statusPublished - 2007
    EventAIB 2007 Annual Meeting: Bringing the Country Back In: The Importance of Local Knowledge in a Global Economy - Indianapolis, United States
    Duration: 25 Jun 200728 Jun 2007
    Conference number: 49
    http://aib.msu.edu/events/2007/

    Conference

    ConferenceAIB 2007 Annual Meeting
    Number49
    CountryUnited States
    CityIndianapolis
    Period25/06/200728/06/2007
    Internet address

    Cite this

    Jakobsen, K., & Meyer, K. E. (2007). Partial Acquistion as an Entry Mode in Transition Economies. In O. Shenkar, & T. Kiyak (Eds.), 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 Academy of International Business. http://aib.msu.edu/events/2007/AIB2007_Proceedings.pdf