A Comparative Analysis of Location and Non-Location-Bounded Strategic Asset Seeking in Emerging and Developed Market MNEs: An Application of New Internalization Theory

Sutherland, D.; Anderson, J.; Hu, Z.

doi:10.1016/j.ibusrev.2019.101635

A Comparative Analysis of Location and Non-Location-Bounded Strategic Asset Seeking in Emerging and Developed Market MNEs: An Application of New Internalization Theory

Sutherland, D.; Anderson, J.; Hu, Z.

Authors

Professor Dylan Sutherland dylan.sutherland@durham.ac.uk
Professor

J. Anderson

Z. Hu

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.

Citation

Sutherland, D., Anderson, J., & Hu, Z. (2020). A Comparative Analysis of Location and Non-Location-Bounded Strategic Asset Seeking in Emerging and Developed Market MNEs: An Application of New Internalization Theory. International Business Review, 29(2), Article 101635. https://doi.org/10.1016/j.ibusrev.2019.101635

Journal Article Type	Article
Acceptance Date	Oct 2, 2019
Online Publication Date	Oct 17, 2019
Publication Date	Apr 30, 2020
Deposit Date	Oct 3, 2019
Publicly Available Date	Oct 17, 2020
Journal	International Business Review
Print ISSN	0969-5931
Publisher	Elsevier
Peer Reviewed	Peer Reviewed
Volume	29
Issue	2
Article Number	101635
DOI	https://doi.org/10.1016/j.ibusrev.2019.101635
Public URL	https://durham-repository.worktribe.com/output/1289835

Files

Accepted Journal Article (887 Kb)
PDF

Publisher Licence URL
http://creativecommons.org/licenses/by-nc-nd/4.0/

Copyright Statement
© 2019 This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/