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The role of experiential and non-experiential knowledge in cross-border acquisitions: The case of Indian multinational enterprises

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  • Buckley, Peter J.
  • Munjal, Surender
  • Enderwick, Peter
  • Forsans, Nicolas

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.

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  • Buckley, Peter J. & Munjal, Surender & Enderwick, Peter & Forsans, Nicolas, 2016. "The role of experiential and non-experiential knowledge in cross-border acquisitions: The case of Indian multinational enterprises," Journal of World Business, Elsevier, vol. 51(5), pages 675-685.
    • Handle: RePEc:eee:worbus:v:51:y:2016:i:5:p:675-685
    DOI: 10.1016/j.jwb.2016.07.006
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