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Host-Home Country Linkages and Host-Home Country Specific Advantages as Determinants of Foreign Acquisitions by Indian Firms

In: The Multinational Enterprise and the Emergence of the Global Factory

Author

Listed:
  • Peter J. Buckley

    (University of Leeds (CIBUL)
    Leeds University Business School)

  • Nicolas Forsans

    (University of Leeds (CIBUL))

  • Surender Munjal

    (University of Delhi)

Abstract

This paper examines the complementarity of country-specific linkages with country-specific advantages in explaining the foreign acquisitions by Indian MNEs by testing and extending further the Eclectic Paradigm. The approach to internationalisation dominated by the Eclectic Paradigm has constantly faced challenges in gaining acceptance as a holistic framework in explaining outward foreign direct investment (OFDI). In 2006 Dunning acknowledged that the role of networks and linkages (Dunning, 2006a). In this paper we explore the view that linkages between host and home country should be included in the Eclectic Paradigm as institutional assets. Country-specific linkages add to richness and improve explanatory power of the Eclectic Paradigm. Linkage variables are shown to be an adjunct to the Eclectic Paradigm, not an alternative to it.

Suggested Citation

  • Peter J. Buckley & Nicolas Forsans & Surender Munjal, 2014. "Host-Home Country Linkages and Host-Home Country Specific Advantages as Determinants of Foreign Acquisitions by Indian Firms," Palgrave Macmillan Books, in: The Multinational Enterprise and the Emergence of the Global Factory, chapter 8, pages 173-199, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-137-40238-7_8
    DOI: 10.1057/9781137402387_8
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    Cited by:

    1. Mukherjee, Debmalya & Kumar, Satish & Mukherjee, Deepraj & Goyal, Kirti, 2022. "Mapping five decades of international business and management research on India: A bibliometric analysis and future directions," Journal of Business Research, Elsevier, vol. 145(C), pages 864-891.
    2. Vissa, Siva Kameswari & Thenmozhi, M., 2022. "Do home country stability factors matter for domestic and cross border mergers and acquisitions? A case of G19 countries," Finance Research Letters, Elsevier, vol. 47(PA).
    3. Abrahms, Max & Dau, Luis Alfonso & Moore, Elizabeth M., 2023. "Should I stay or should I go now? Understanding terrorism as a driver of institutional escapism," International Business Review, Elsevier, vol. 32(4).
    4. Giammanco, Maria Daniela & Gitto, Lara, 2019. "Health expenditure and FDI in Europe," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 255-267.

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