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Do we buy more or less when we want to learn? The knowledge strategies and structural forms of US cross-border acquisitions

Author

Listed:
  • Manuel Portugal Ferreira

    (Instituto Politécnico de Leiria)

  • Stephen Tallman

    (Richmond University)

  • Dan Li

    (Kelley School of Business - Indiana University)

Abstract

Cross-border acquisitions may be a primary mode for accessing novel knowledge and the building up of knowledge capabilities. However, the successful exploration of novel business and/or location knowledge may require specific structural forms for the incorporation and internal transfer to occur. In this paper we examine the relationship between the knowledge strategy and the structural form of the acquisition, specifically the degree of equity acquired. Our analyses of 439 US cross-border acquisitions revealed a curvilinear effect of location-related knowledge exploration but a linear effect of business-related knowledge exploration on the structural form of cross-border acquisition. We conclude that the knowledge strategy, and perhaps the type of knowledge being sought, is related in complex manners to the structural form adopted.

Suggested Citation

  • Manuel Portugal Ferreira & Stephen Tallman & Dan Li, 2007. "Do we buy more or less when we want to learn? The knowledge strategies and structural forms of US cross-border acquisitions," Working Papers 6, globADVANTAGE, Polytechnic Institute of Leiria.
    • Handle: RePEc:pil:wpaper:6
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    cross-border acquisitions; knowledge strategy; equity ownership; structural forms; learning;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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