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Home country and firm-specific ownership advantages: A study of US, UK and French advertising agencies

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  • Nachum, L.
  • Rolle, J. D.

Abstract

This study seeks to assess the extent to which home countries affect the ownership advantages of TNCs and their subsequent international competitiveness, and to examine the possible origins of ownership advantages in certain characteristics of the home countries of the TNCs concerned or in specific attributes of individual firms. The paper presents an empirical analysis based on examination of the explanatory power of a set of ownership advantages for the international competitiveness of advertising agencies and their discriminatory power between winners and losers based in the UK, the US and France. The findings suggest that home country characteristics are critical, but they provide only a partial explanation for the nature and extent of the ownership advantages which advertising agencies develop. While some advantages can be attributed to specific home country characteristics, and are thus shared by agencies of the same nationality, others tend to be related to the particular attributes of individual agencies.

Suggested Citation

  • Nachum, L. & Rolle, J. D., 1999. "Home country and firm-specific ownership advantages: A study of US, UK and French advertising agencies," International Business Review, Elsevier, vol. 8(5-6), pages 633-660, October.
    • Handle: RePEc:eee:iburev:v:8:y:1999:i:5-6:p:633-660
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    2. Uddin, Moshfique & Boateng, Agyenim, 2011. "Explaining the trends in the UK cross-border mergers & acquisitions: An analysis of macro-economic factors," International Business Review, Elsevier, vol. 20(5), pages 547-556, October.
    3. Tolentino, Paz Estrella, 2010. "Home country macroeconomic factors and outward FDI of China and India," Journal of International Management, Elsevier, vol. 16(2), pages 102-120, June.
    4. Tolentino, Paz Estrella, 2008. "The determinants of the outward foreign direct investment of China and India: Whither the home country?," MERIT Working Papers 2008-049, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Huang, Tai-Yuan & Hu, Jer-San & Chen, Kuo-Chia, 2008. "The influence of market and product knowledge resource embeddedness on the international mergers of advertising agencies: The case-study approach," International Business Review, Elsevier, vol. 17(5), pages 587-599, October.
    6. Dunning, John H. & Pak, Yong Suhk & Beldona, Sam, 2007. "Foreign ownership strategies of UK and US international franchisors: An exploratory application of Dunning's envelope paradigm," International Business Review, Elsevier, vol. 16(5), pages 531-548, October.
    7. Walters, Peter G.P. & Whitla, Paul & Davies, Howard, 2008. "Global strategy in the international advertising industry," International Business Review, Elsevier, vol. 17(3), pages 235-249, June.
    8. Boateng, Agyenim & Hua, Xiuping & Uddin, Moshfique & Du, Min, 2014. "Home country macroeconomic factors on outward cross-border mergers and acquisitions: Evidence from the UK," Research in International Business and Finance, Elsevier, vol. 30(C), pages 202-216.

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