Faculty Publications

A Comparative Analysis Of Location And Non-Location-Bounded Strategic Asset Seeking In Emerging And Developed Market Mnes: An Application Of New Internalization Theory

Document Type

Article

Keywords

Emerging market MNEs, FDI, Location and non-location boundedness, New internalization theory, Strategic asset seeking

Journal/Book/Conference Title

International Business Review

Volume

29

Issue

2

Abstract

Do emerging market (E)MNEs have a stronger strategic asset seeking FDI orientation than developed market (D)MNEs? If so, what are the properties of the strategic assets they actually seek and are they similar or dissimilar to those of DMNEs? Drawing from new internalization theory, we show that lying concealed within some mainstream EMNE models are important predictions regarding differences in the location-boundedness properties of the strategic assets sought by EMNEs compared with DMNEs. Using multinomial logit modelling on 2414 international M&A deals, we explore how acquirer characteristics shape location-bounded (trademark) and non-location bounded (patent) strategic asset seeking choices. In general, we find evidence that EMNEs have a comparatively stronger patent but weaker trademark seeking orientation than DMNEs. We discuss implications for EMNE related theory, focusing on the qualitative differences in asset seeking orientation between EMNEs and DMNEs.

Original Publication Date

4-1-2020

DOI of published version

10.1016/j.ibusrev.2019.101635

Repository

UNI ScholarWorks, Rod Library, University of Northern Iowa

Language

en

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