AIB 2012 Conference Proceedings - Academy of International ...

MONDAY
Is There a Link Between Geography, Regional Integration and Governance A Study of MNEs' Entry Mode
Decisions in Europe
Roberto Ragozzino, University of Texas at Dallas
Caterina Moschieri, IE Business School / Universidade Católica Portuguesa
Brian C. Pinkham, University of Texas at Dallas
This study uses an economic geography lens and it focuses on supra-national institutions as determinants of
entry mode. We examine the relationship between geographic distance and the choice of governance
implemented by firms seeking cross-border corporate growth in Europe. We are also interested in determining
whether the evolution of Europe as a business environment and membership of the host country in the
European Union affect this outcome. The results strongly support our predictions. Namely, geographic distance,
the process of integration of Europe and EU membership directly shape the manner in which MNEs choose to
expand internationally. (For more information, please contact: Brian C. Pinkham, University of Texas at Dallas,
USA: brian.pinkham@utdallas.edu)
Entry Mode Choice: Is MNEs' Behavior Space-Neutral
Lucia Piscitello, Politecnico di Milano
Sergio Mariotti, Politecnico di Milano
Stefano Elia, Politecnico di Milano
This paper assesses the role of spatial heterogeneity on the MNEs' entry mode choice, by analyzing foreign
acquisitions of local manufacturing firms occurred in Italy in the period 2001-2010. We claim that the MNEs'
behavior is not space-neutral, and that the degree of ownership in cross border acquisitions is influenced by
sub-national subtleties. In particular, the country core, the border areas, and the industrial districts generate
information and knowledge spillovers that partially substitute those embedded in local target firms. Hence, the
need of relying on local partnership to overcome the liability of foreignness, and to access distinctive countryand
business-specific competences, decreases accordingly. (For more information, please contact: Lucia
Piscitello, Politecnico di Milano, Italy: lucia.piscitello@polimi.it)
Environmental Munificence, Prior Experience, and the Prevalence of Cross-Border Mergers & Acquisitions
Rimi Zakaria, Florida International University
W.G. Douglas Fernandez, Florida International University
William Schneper, Florida International University
This study examines the implications of organizational learning and the scarcity of economic resources on the
types of merger & acquisitions (M&A) undertaken by large US firms. We explore whether companies are more
likely to pursue foreign M&As over domestic M&A's during periods of low environmental munificence in the
home country and low organizational slack at the firm level. We further evaluate the moderating effect of the
focal firm's prior relevant experience on the relationship between its environmental munificence and nature of
M&A attempt. Thus, drawing on the literature on environmental munificence, organizational search, and
organizational learning perspectives, this study seeks to explain the resource-, learning-, and routine-based
antecedents of cross-border M&A activities. Results analyzed from a sample of 8,410 cross-border M&A activity
attempted by the S&P 500 companies during the period of 1994 to 2009 generally support our theoretical
understanding that resources and learning significantly influence a firm's acquisition behavior. (For more
information, please contact: W.G. Douglas Fernandez, Florida International University, USA:
wdoug002@fiu.edu)
Asset-Seeking Acquisitions: Performance Consequences for Service Sector EMNCs
Sathyajit Gubbi, University of Groningen
Padma Rao Sahib, University of Groningen
AIB 2012 Conference Proceedings
Page 107