Title: Strategy impact on the choice of partial versus full acquisitions: evidence from Japanese outbound acquisitions
Authors: Kashif Ahmed; Ralf Bebenroth
Addresses: Graduate School of Business Administration, Kobe University, 2-1 Rokkodai, Nada, Kobe 657-8501, Japan ' Research Institute for Economics & Business Administration (RIEB), Kobe University, Shinkan 304, 2-1 Rokodai, Nada, Kobe 657-8501, Japan
Abstract: In this study, we investigated how strategies adopted by firms impacted their decision to make either partial or full acquisitions in cross-border deals. Our sample comprised Japanese cross-border acquirers that had three different viable strategies, viz. prospectors, defenders, and analysers. Applying transaction cost economics, the strategic capability perspective and the strategic cognition perspective, we found that not only prospectors but also analysers preferred full acquisitions, whereas defenders had a preference for partial acquisitions. This study shows that strategy impacts acquisition behaviour, and cautions managers to consider aspects of partner opportunism and firm capabilities when choosing between partial and full acquisitions.
Keywords: Miles and Snow typology; analysers; prospectors; defenders; partial acquisitions; full acquisitions; mergers and acquisitions; Japan.
International Journal of Management Practice, 2020 Vol.13 No.4, pp.373 - 400
Received: 29 Jan 2019
Accepted: 05 Aug 2019
Published online: 20 May 2020 *