Learning by doing: Cross-border mergers and acquisitions

Jamie D. Collins, Tim R. Holcomb, Samuel Certo, Michael A. Hitt, Richard H. Lester

Research output: Contribution to journalArticlepeer-review

108 Scopus citations

Abstract

We rely on organizational learning theory and strategic momentum research to examine the international merger and acquisition (M&A) activities of a sample of S&P 500 firms. We hypothesize that the learning associated with a firm's prior acquisition experience increases the likelihood the firm will engage in subsequent international acquisitions. Results from a sample including company-country level data indicate that both prior domestic acquisitions and international acquisitions influence the likelihood of acquisitions in foreign markets by U.S.-based firms. We also find that prior experience with international acquisitions is more predictive of subsequent international acquisitions than prior domestic acquisition experience. Moreover, we find that the acquisition experience within a host country had a stronger influence on subsequent acquisitions within that country than other prior non-host country international acquisition experiences.

Original languageEnglish (US)
Pages (from-to)1329-1334
Number of pages6
JournalJournal of Business Research
Volume62
Issue number12
DOIs
StatePublished - Dec 2009

Keywords

  • Acquisitions
  • Cross-border
  • Momentum
  • Organizational learning

ASJC Scopus subject areas

  • Marketing

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