Somnath Lahiri

How Does Firm Experience and Institutional Distance Impact Ownership Choice in High‐Technology Acquisitions?

One of the critical reasons for a firm to acquire other firms is to access new technology. This study seeks to understand what ownership position a firm should take in foreign markets if the target is in a high‐technology industry. Specifically, it looks at how firm‐level experience and institutional distance could impact this ownership. Using logistic regression models on a sample of 1,091 cross‐border acquisitions undertaken by firms from 36 countries over an 8‐year time period (2001–2008), we find that when firms acquire targets in a high‐technology industry, they resort to partial acquisitions. Our analysis further suggests that when firms seek targets in high‐technology industries but have experience with acquisitions or face higher institutional distance, the likelihood of full acquisitions over partial ones increases. Study findings contribute to our understanding of the interactive relationship among technology, experience, and institutional distance in determining appropriate ownership choices.

BRIC Economies: Earlier Growth Constraints, Contemporary Transformations and Future Potential, and Key Challenges

The economic power of Brazil, Russia, India and China (BRICs) is rapidly increasing, changing the landscape of global economics and politics. Top scholars of international business address in this vital volume the markets, strategy implications, challenges and possibilities of this new economic reality. As these four nations acquire greater economic clout, the opportunities for other countries increase. The contributors describe the favorable circumstances these evolving economies could provide for the US and other countries, such as expanded markets and services, higher returns on investments, and new partners in building a more peaceful and prosperous world. In contrast, they also discuss risks to traditional industries and possible challenges to positions on human rights and intellectual property protections, environmental standards, free markets and democratic governments. The volume emphasizes the need for companies to adopt strategies to stay ahead in the changing business environment. Governments must also design and implement new policies geared toward mutually beneficial relationships with BRICs.

Brazil‐focused publications in leading business journals

Purpose – The purpose of this study is to conduct an overview of Brazil‐focused publications that appeared in leading business journals between 1990 and 2008 by highlighting and ranking contributions of individual authors and their affiliating institutions, summarizing types of research, research topics and theoretical perspectives, analyzing citations received by different articles and developing agenda for future research.Design/methodology/approach – A total of 11 leading journals are selected on the basis of past research. A usable sample of 33 publications is obtained by conducting electronic database search for articles that focus on Brazil. Analysis of contributions, research designs, research topics, theoretical perspectives, and citations received by each article is conducted and various findings are discussed.Findings – A total of 80 authors affiliated to 67 academic and seven non‐academic institutions from six geographic locations contributed to the research by examining a wide variety of busin...

Emerging market multinationals' location choice: The role of firm resources and internationalization motivations

Purpose – Location choice made by emerging market multinationals (EMMs) constitutes an important yet somewhat neglected topic in business research. The purpose of this paper is to develop a research framework that elucidates the role of EMM‐specific resources and internationalization motivations on the location choice of EMMs.Design/methodology/approach – The literature pertaining to firm‐specific resources and internationalization motivations as determinants of location choice is reviewed. This leads to the development of a research framework that takes into account various combinations of resources and motivations in explaining the location choice of EMMs. The paper offers research propositions by linking resources, motivations, and the appropriate choice of locations.Findings – The paper illustrates that location choices of EMMs are determined by the interplay of various resources (relationship‐based, home experiences‐based, and country created assets‐based) and internationalization motivations (market...

The Internationalization of African Small and Medium Enterprises (SMEs): A South-North Pattern

Despite the growing internationalization of small and medium enterprises (SMEs) from Africa, related research remains limited. Adopting a qualitative approach, this study investigates three SMEs in the African coffee subsector that internationalized rapidly beyond the continent. The case studies, based on interview and secondary information, shed light on the antecedents, timing, strategies, modes and consequences of the SMEs’ South-North internationalization. The cases also generate understanding of how various elements of SMEs’ foreign expansion compare with those of previously studied firms. Our analysis reveals that an understanding of SME internationalization is attainable by integrating multiple theoretical foundations (i.e., the Uppsala model, Linkage-Leverage-Learning framework, and Network theory). We develop testable propositions and conclude by providing managerial and policy implications, highlighting limitations, and suggesting directions for future research.

The moderating influence of market potential and prior experience on the governance quality-equity participation relationship: Evidence from acquisitions in BRIC

Purpose The purpose of this paper is to theorize and examine how target country governance quality, target country market potential and acquirer’s prior experience impacts equity participation in cross-border acquisitions. Design/methodology/approach The hypothesized effects are tested using a sample of 1,447 acquisitions undertaken over an 11-year time by US-based multinational enterprises (MNEs) in four emerging markets: Brazil, Russia, India and China (BRIC). Findings Analysis suggests that target country governance quality (government effectiveness, rule of law and control of corruption) strongly influences equity participation, and market potential moderates the influence of governance quality on equity participation. Further, findings demonstrate that acquirer’s target country acquisition experience amplifies the positive influence of market potential on governance quality-equity participation relationship. Originality/value This study adds to the existing knowledge of equity participation in cross-border acquisitions (CBAs) undertaken by foreign MNEs in BRICs. This understanding is important since MNEs across the globe invest in BRIC utilizing CBA, and related research remains limited.

Do Diversified Business Groups Help Organizational Performance

Abstract: The superior performance of firms affiliated with business groups as compared to unaffiliated firms has not been clearly established in the literature. Previous studies examining the effect of business groups on firm performance have found varying results (Khanna and Palepu 2000a, 2000b; Chang and Hong 2002; Chu 2004). These findings are the results of analysis conducted at the aggregate level across all industries. This study examines performance of affiliated and unaffiliated firms separately across three industries in India. The results indicate that the impact of group affiliation is not uniform across industries. Further, the study examines the relationship between business group diversification and firm performance across industries after controlling for certain variables that impact performance. Findings indicate that the relationship is not unique across various industries.