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The Effect of Cross-border Acquisition Experience on Subsequent Cross-border Acquisitions: A Test of the S-shape Hypothesis

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  • Sharma, Revti Raman
  • Chowdhury, Sharmistha
  • Yu, Yang

Abstract

The literature generally supports the linear effect of cross-border acquisition (CBA) experience on subsequent CBA behaviour. We draw from the extended organisational learning perspective to propose an S-shaped relationship between CBA experience and subsequent CBAs. We hypothesise that the number of CBAs decreases at a low level of CBA experience, increases at a moderate level of CBA experience, and decreases again at a high level of CBA experience. Based on a sample of 1675 observations from 205 Indian MNEs, we find support for our hypothesis. Our findings contribute to the CBA literature, specifically in the context of emerging economy multinational enterprises.

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  • Sharma, Revti Raman & Chowdhury, Sharmistha & Yu, Yang, 2024. "The Effect of Cross-border Acquisition Experience on Subsequent Cross-border Acquisitions: A Test of the S-shape Hypothesis," Journal of International Management, Elsevier, vol. 30(3).
    • Handle: RePEc:eee:intman:v:30:y:2024:i:3:s107542532400019x
    DOI: 10.1016/j.intman.2024.101138
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