AIB 2012 Conference Proceedings - Academy of International ...

MONDAY
Not for All: What Explains Cross-Border Acquisitions from Emerging Market Firms
Larissa Rabbiosi, Copenhagen Business School
Tamara Stucchi, Copenhagen Business School
Drawing upon the resource-based view, we examine how the degree of geographic fungibility of firm-specific
resources (upstream, downstream and relational assets) relates to the location choice of international
acquisitions made by emerging market firms. We test our hypotheses on 14,330 observations of Indian firms
observed in the period 2006-2010. The results suggest that upstream (technological) resources enhance
acquisitions in developed markets while acquisitions in other developing countries are more likely when the
emerging market firm owns greater advertising resources. Relational assets also contribute in explaining the
destination of acquisitions by emerging market firms: local-based ties inhibit the probability of engaging in
cross-border acquisitions, while co-ethnic-based ties enhance the probability of acquisitions in advanced
markets. (For more information, please contact: Tamara Stucchi, Copenhagen Business School, Denmark:
ts.smg@cbs.dk)
Foreign Listing: An Internationalization Approach of Emerging Market Firms
Yangwen Wang, Chinese University of Hong Kong
Xufei Ma, Chinese University of Hong Kong
Foreign listing is a surging phenomenon in global capital market. The financial motivations for listing abroad
have been widely studied in finance and economics. However, explanations are lacking from strategic
perspective. We argue that foreign listing is an important strategic decision to help with the emerging market
firms' international expansion. Employing organizational learning theory, we suggest that foreign listing provides
firms with fast and low cost learning experience, which helps EMFs to overcome their liability of foreignness and
latecomer disadvantage. Furthermore, we investigate the special institutional environment EMFs facing. We
suggest that served as institutional supports, business group affiliation, subnational institutional openness and
industry popularity in the global market give the firm legitimacy in both the home country and the foreign stock
market, and thus promote foreign listing. We further propose that these institutional supports facilitate learning
process, and thus positively moderate the relationship between internationalization and foreign listing. (For
more information, please contact: Yangwen Wang, Chinese University of Hong Kong, Hong Kong, SAR-PRC:
yangwen@baf.msmail.cuhk.edu.hk)
The Direct and Contingent Value of Subnational Institutions on Emerging Market Firms' Internationalization
Zhujun Ding, Chinese University of Hong Kong
Xufei Ma, Chinese University of Hong Kong
This study examines the relationship between subnational institutions and emerging market firms' (EMFs)
internationalization and suggests that these relationships are related to firm's nonmarket and market
capabilities. Using survey data of 727 Chinese private enterprises in 31 provinces, we find that EMFs homebased
subnational institutions, in terms of government market orientation, product market development, and
labor market development, have a positive effect on EMF's internationalization, while EMFs' nonmarket
capabilities and market capabilities play the contingent role to influence the above relationship. Theoretically,
the findings highlight the importance of considering subnational institutions and firm-specific capabilities
simultaneously in understanding EMFs' international strategy. Empirically, this study adopts a multilevel
modeling to demonstrate both the direct and contingent nature of the role that subnational institutions play on
EMFs' internationalization. (For more information, please contact: Zhujun Ding, Chinese University of Hong
Kong, Hong Kong, SAR-PRC: zhujun@baf.msmail.cuhk.edu.hk)
AIB 2012 Conference Proceedings
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