Embeddedness

About: Embeddedness is a research topic. Over the lifetime, 4773 publications have been published within this topic receiving 229721 citations.

Cross‐border mergers/acquisitions: a review and research agenda

Abstract: Cross-border mergerssacquisitions account for the bulk of contemporary foreign direct investment. Their significance, which is reinforcing the position of transnational corporations as the dominant institutional force in the global economy, is related to the nexus of processes implicated in international economic restructuring. Cross-border mergerssacquisitions are, therefore, important influences upon the evolution of the space economy, but this perspective on mergersacquisition activity has been neglected in academic research. This review makes connections between disparate literatures to identify potential lines of enquiry and attempts to situate these lines of enquiry within current research agendas in economic geography. On a basic level, mergerssacquisitions create new corporate geographies which represent valid objects of research in the geography of enterprise tradition. However, these corporate geographies are set within the institutional context of social, economic, and political relations. Many of the most interesting research questions derive from these contextual relations which are addressed with reference to issues of embeddedness at various geographical scales and also by linking these issues to aspects of employment and territorial development. Copyright 2003, Oxford University Press.

The role of local context in the cross-border acquisitions by emerging economy multinational enterprises

Abstract: This paper explores the role of local context in cross-border acquisitions by emerging economy multinational enterprises (EMNEs). It argues that the importance of local context has remained despite the increased global integration of the world economy. Hypotheses are tested using data on Indian acquisitions hosted in 70 countries over an eight-year period. Results, which are consistent across number and value of cross-border acquisitions, show that the local context in host countries offers contrasting benefits. Emerging economy multinational enterprises exploited these benefits by embedding in host countries through acquisitions. The acquisition strategy is conventional in the motives underpinning internationalization, but novel in its geographical clustering of host countries, and idiosyncratic owing to the EMNE's ability to draw on home country embeddedness. The paper develops theoretical implications and extends the concept of embeddedness, treating it as a series of internalization or quasi-internalization decisions across a variety of local contexts by multinationals.

The Internationalization of SMES in Emerging Economies: Institional Embeddedness and Absorptive Capacities

Abstract: We examine the importance of institutional embeddedness and dynamic capabilities in the internationalization strategies of small and medium-sized enterprises (SMEs) in emerging economies. We focus on two types of SMEs - incumbent SMEs and entrepreneurial start-ups. We argue that incumbent SMEs can increase their internationalization capabilities by using their embedded networks with local governments and business groups. Entrepreneurial start-ups in emerging economies may develop new capabilities by learning from foreign firms and business groups. Therefore, entrepreneurial start-ups identify, create, and exploit new opportunities continuously in foreign markets. This work contributes to our knowledge of how incumbent SMEs and entrepreneurial ventures in emerging markets build knowledge and capabilities to enter and compete successfully in international markets.