Local externalities and ownership choices in foreign acquisitions by multinational enterprises

Auteur(s) et Affiliation(s)



Description :
This article assesses the influence of spatial heterogeneity on the entry mode by multinational enterprises (MNEs) in Italy. Focusing on acquisitions, it claim that the location of the target firm influences the MNE’s ownership choice. It show that, in particular, core cities allow them to access a variety of information andknowledge as well as other externalities that are associated with international interconnectedness; industrial districts provide MNEs with easier access to industry-specific agglomeration economies. It concludes that these locations provide substitutes for different aspects of the target firm’s competences, thus reducing an MNE’s need to maintain a local partner.


Type de document :
Article de périodique

Source :
Economic geography, issn : 0013-0095, 2014, vol. 90, n°. 2, p. 187-211, nombre de pages : 25

Date :
2014

Editeur :
Pays édition : Etats-Unis, Worcester, MA, Clark University