Acquisitions from emerging countries: what factors influence the performance of target firms in advanced countries?

Abstract

This study investigates the way in which acquisitions from emerging economies impact on the performance of target firms in advanced countries. The study makes a number of contributions to the international business literature. Firstly, it extends the resource-based view of the firm by explaining that both the resources of the target firm and the resources of the acquiring company play an important role in determining performance outcomes. Secondly, our theoretical analysis indicates that the performance of the target firm is influenced not only by its own network, but also by the national and international network of the acquiring company. Thirdly, this study sheds light on the strategic fit of the acquisition. According to our analysis, the performance of the target firm is likely to be maximised when there is a moderate level of relatedness between the target and the acquiring company.