Professor of Strategy
Cross-border Acquisitions; FDI; Resource Redeployment; Productivity; Corporate Governance; Investors, Stakeholders and Accountability;
Journal Article | Strategic Management Journal | 36 | May 2015
Productivity Enhancement at Home via Cross-Border Acquisitions: The Roles of Learning and Contemporaneous Domestic Investments
The authors examine whether ex post domestic productivity gains accrue to firms making crossborder acquisitions. The authors argue that cross-border acquisitions can enhance the acquirers’ productivity at home, and they posit that these domestic productivity gains will be greater when there are learning opportunities in the target’s host country and when contemporaneous domestic productivity-enhancing investments are made by the acquirer in conjunction with the acquisition.These predictions are supported by data drawn from a sample of French acquiring and non-acquiring firms. The results indicate that cross-border acquisitions and investing in productivity at home are complementary: each makes the other more beneficial to firm productivity.