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The role of experiential and non-experiential knowledge in cross-border acquisitions: The case of Indian multinational enterprises
Affiliation:1. Centre for International Business, Leeds University Business School, University of Leeds, Leeds, LS2 9JT, United Kingdom;2. Auckland University of Technology, Auckland, New Zealand;3. University of Exeter Business School, Exeter, EX4 4PU, United Kingdom;4. Director, James E. Lynch India and South Asia Business Centre, Leeds University Business School, University of Leeds, Leeds, LS2 9JT, United Kingdom;1. Université de Lorraine and Ecricome Universa, Nancy, France;2. Research Department, Central Bank of Albania, Sheshi “Skënderbej”, nr. 1, Tiranë, Albania;3. ICN Business School, 13 Rue Michel Ney, 54000 Nancy, France;1. Sun Yat-Sen Business School, Sun Yat-Sen University, Guangzhou, Guangdong Province, China;2. Texas Christian University, Fort Worth, TX 76129, USA;3. City University London, London, UK;4. Vienna University of Economics and Business, Vienna, Austria;1. Department of Business Administration, Enterprise & Social Development Research Centre, Hong Kong Shue Yan University, North Point, Hong Kong;2. Department of Management, The Chinese University of Hong Kong, Shatin, N.T., Hong Kong;3. School of Business, Renmin University of China, Beijing, China;1. Department of Management, Bologna, Italy;2. Department of Industrial and Information Engineering & Economics, University of L’Aquila, Italy;1. Assistant Professor, Poznań University of Economics and Business, al. Niepodległości 10, 61-875 Poznań, Poland;2. Associate Professor, International Business & Strategy Group, D’Amore-McKim School of Business, Northeastern University, 360 Huntington Avenue, 315C Hayden Hall, Boston, MA 02115, United States
Abstract:This paper investigates the antecedents of the internationalization of emerging economy multinational enterprises (EMNEs) through cross-border acquisitions. Using a panel data set of 1138 cross-border acquisitions made by 515 Indian multinational enterprises (MNEs) during 2000–2013, it examines interactions of in-house resources with experiential and non-experiential knowledge to explore how EMNEs manage and exploit their knowledge base when internationalizing. The results show that Indian multinational enterprises have ‘interface competence’. They combine in-house resources with experiential market and externally sourced technological knowledge for undertaking cross-border acquisitions. The Uppsala model provides insights in analyzing the role of market knowledge and the Global Factory model helps in analyzing the role of technology in cross-border acquisitions by EMNEs.
Keywords:Cross-border acquisitions  Experiential and non-experiential knowledge  Resources  Learning  Emerging market multinational enterprises  Internationalization
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