Loading...
R&D capabilities, intellectual property strength and choice of equity ownership in cross-border acquisitions: Evidence from BRICS acquirers in Europe
Ahammad, M.F. Konwar, Ziko Papageorgiadis, Nikolaos Wang, Chengang
Ahammad, M.F.
Konwar, Ziko
Papageorgiadis, Nikolaos
Wang, Chengang
Publication Date
2018-03
End of Embargo
Supervisor
Rights
© 2018 Wiley. This is the peer-reviewed version of the following article: Ahammad MF, Konwar Z, Papageorgiadis N et al (2018) R&D capabilities, intellectual property strength and choice of equity ownership in cross-border acquisitions: Evidence from BRICS acquirers in Europe. R&D Management. Accepted for publication, which has been published in final form at https://doi.org/10.1111/radm.12274. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Peer-Reviewed
Yes
Open Access status
openAccess
Accepted for publication
09/05/2017
Institution
Department
Awarded
Embargo end date
Collections
Abstract
The aim of the study is to investigate two relatively underexplored factors, namely, the R&D (research and development) capabilities of target firms and the strength of intellectual property (IP) institutions in target economies, that influences the choice of equity ownership in cross border acquisitions (CBAs) undertaken by multinational enterprises (MNEs) from BRICS (Brazil, Russia, India, China and South Africa) economies. We develop our key hypothesis on foreign market entry through CBAs by incorporating insights from transaction costs economics, the resource-based view and institutional theory to investigate the determinants of full versus partial equity ownership. Using logistic regression estimation methods to a sample of 111 CBA deals of BRICS MNEs in 22 European countries, we find that BRICS MNEs are likely to pursue full rather than partial acquisition mode when target firms have high R&D capabilities. However, the greater the degree of strength of IP institutions in target economies and higher the target firms’ R&D capabilities, the more likely it is for BRICS MNEs to undertake partial, rather than, full acquisition mode. We provide interesting theoretical insights and managerial implications that might underlie some of the key findings on CBAs by emerging market MNEs.
Version
Accepted manuscript
Citation
Ahammad MF, Konwar Z, Papageorgiadis N et al (2018) R&D capabilities, intellectual property strength and choice of equity ownership in cross-border acquisitions: Evidence from BRICS acquirers in Europe. R&D Management. 48(2): 177-194.
Link to publisher’s version
Link to published version
Link to Version of Record
Type
Article