Daniele Cerrato

Organizational slack, experience, and acquisition behavior across varying economic environments

Purpose – The purpose of this paper is to examine the effects of the organizational slack and acquisition experience on acquisition behavior across varying environmental conditions. Drawing from behavioral theory and the threat-rigidity hypothesis, the paper explores firm acquisition behavior, in terms of type of acquisitions, before and during the recent economic downturn. Design/methodology/approach – Using data on 385 acquisitions in Italy in the period 2007-2010, the paper tests hypotheses on how organizational slack and acquisition experience influence the likelihood of cross-border and diversifying acquisitions relative to domestic, non-diversifying acquisitions prior to and during the economic downturn. Findings – Results suggest that the availability of financial resources and acquisition experience both have an important influence on acquisition behavior. Firms with greater slack and acquisition experience were more likely to make diversifying and/or cross-border acquisitions, compared to domesti...

Unbundling the construct of firm‐level international competitiveness

Purpose – The purpose of this paper is to develop a framework for positioning the research contributions on the analysis of firm‐level international competitiveness and addressing the key issues on this topic.Design/methodology/approach – Linking the concepts of internationalization, performance, and firm‐level competitiveness, the paper proposes a framework for identifying the different dimensions of international competitiveness. Literature on each dimension is reviewed and the linkages between them are discussed.Findings – The paper unbundles the construct of international competitiveness into three dimensions: “ex ante” competitiveness, relating to firm‐ and location‐specific advantages as drivers of competitiveness; firm internationalization profile, resulting from the qualitative and quantitative characteristics of a firms presence abroad; “ex post” competitiveness, relating to market, financial and nonfinancial performance of a firm in foreign markets.Originality/value – Although the analysis of i...

Experience and Cross‐Border Acquisitions: An Organizational Learning Perspective

Building on organizational learning theory, and notably on the notion of strategic momentum, we examine the antecedents of cross-border acquisitions, with a specific focus on the effect of experience. In particular, we unbundle firm experience into domestic and cross-border acquisition experience. Using data on 763 acquisitions in the period 2007–2013, our results show the existence of a U-shaped relationship between domestic acquisition experience and the likelihood of cross-border acquisitions: acquisition experience in the domestic market is negatively related to subsequent international M&A activity up to a certain level, after which accumulation of experience in the domestic market generates process-related capabilities that encourage subsequent cross-border acquisitions. Empirical support is provided for an inverted U-shaped relationship between prior cross-border acquisition experience and the likelihood of subsequent cross-border acquisitions: such experience encourages further acquisitions up to the point at which the coordination costs discourage further international expansion.

Export Consortia in Developing Countries

Export Consortia in Developing countries , Export Consortia in Developing countries , مرکز فناوری اطلاعات و اطلاع رسانی کشاورزی

Acquirer-to-target relatedness and target country unfamiliarity in acquisitions: The role of product diversification and international experience

Purpose The purpose of this paper is to analyze corporate scope decisions in acquisitions with a focus on the relationship between target country unfamiliarity and acquirer-to-target relatedness and on the moderating effects played by product diversification and international experience. Design/methodology/approach Using a dataset of 689 acquisitions completed in the period 2007-2013 by acquirers located in 60 countries, this paper utilizes an ordered logistic regression analysis. Findings With greater target country unfamiliarity, acquirers are encouraged to pursue greater acquirer-to-target relatedness. This finding suggests that acquirers tend to seek a balance between product and international diversification to reduce the sources of uncertainty in their acquisition moves. While past international experience strengthens this relationship, diversification experience has a negative moderating effect and hence encourages acquirers to reduce relatedness at increasing market unfamiliarity. Originality/value The originality of this paper is twofold. First, the authors extend the traditional internationalization-diversification framework to an unfamiliarity-relatedness relationship in the context of acquisitions. Second, the authors propose a construct of target country unfamiliarity in acquisitions that goes beyond the traditional domestic vs cross-border dichotomy by including previous experience in the target country.

Strategic Networks, Trust and the Competitive Advantage of SMEs

Network-based research shows that the internationalization process of firms is largely driven by network relationships. Joining a network can be even more important for SMEs, as they face a variety of internal constraints due mainly to the lack of financial and managerial resources.

SME Managers’ Perceptions of Competitive Pressure and the Adoption of Environmental Practices in Fragmented Industries: A Multi-Country Study in the Wine Industry

This study explains how managers’ perceptions of pressure from competitors and industry associations to adopt environmental practices are associated with the adoption of such practices, and firm performance in small- and medium-sized enterprises (SMEs) in fragmented industries. First, we hypothesize, in fragmented industries, perceived weaker competitive pressure focuses SME managers’ attention on opportunities associated with the adoption of environmental practices, resulting in further adoption of such practices. We also hypothesize that perceived stronger competitive pressure focuses managers’ attention on competitive threats and efforts to maximize value creation from adopted practices, thus, positively moderating the relationship between adopted environmental practices and financial performance. We test our hypotheses with survey data from wineries and vineyards in Italy, France, Denmark, and the United States, and find support for both hypotheses. These findings deepen our understanding of how SMEs in fragmented industries respond to perceived competitive pressure to adopt environmental practices.

Internationalization of Small and Medium-Sized Enterprises

The international activities of small firms are constrained by several barriers, including limited resources and capabilities to invest in exploiting growth opportunities abroad. This is particularly true of Small and Medium-sized Enterprises (SMEs) in developing countries, which are characterized by fewer managerial resources, experience and support services compared to their counterparts in developed countries.

Empirical Analysis of Nine Export Consortia of SMEs in Morocco, Tunisia, Peru and Uruguay

In this chapter we present the empirical evidence which forms the basis of this book. Our analysis covers nine export consortia supported by the United Nations Industrial Development Organization (UNIDO) in developing countries between 2004 and 2007: four in Peru, three in Morocco, and one each in Tunisia and Uruguay.

Export Consortia: Types and Characteristics

Export consortia are a particular form of inter-firm network dedicated to fostering the internationalization of SMEs. Forming horizontal ties with other domestic partners may enable small firms to solve a variety of export problems including organizational and financial issues, an inadequate or incomplete value proposition, and a lack of information about foreign markets. Export consortia can be classified on the basis of various factors, such as scope, objectives, sectors, types of relationship between partners, location of partners, size and number of partners