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


    Multinational enterprises often acquire stakes in an existing enterprise when entering emerging economies. Thispaper 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 aredistinct from other modes with respect to the transfer of resources to the subsidiary and the determinants ofentry mode choice.Recent research suggests that a buyer prefers partial acquisitions, when a seller possesses asymmetrici nformation 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.
    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


    ConferenceAIB 2007 Annual Meeting
    Country/TerritoryUnited States
    Internet address

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