Title: Emerging economies firms' expansion in the European Union: acquisitions vs. alliances

Authors: Siah Hwee Ang, Snejina Michailova

Addresses: Department of Management and International Business, The University of Auckland, Private Bag 92019, Auckland Mail Centre, Auckland 1142, New Zealand. ' Department of Management and International Business, The University of Auckland, Private Bag 92019, Auckland Mail Centre, Auckland 1142, New Zealand

Abstract: We examine how regulatory and normative institutional factors influence the choice of acquisitions vs. alliances by Brazil, Russia, India and China (BRIC) firms in the European Union (EU). Using a sample of 228 acquisitions and 48 alliances established by BRIC firms in the EU in the period 2001–2005, we find regulatory but not normative effect on the choice of acquisitions vs. alliances. Specifically, we find that BRIC firms are more likely to acquire rather than ally when the target host country has a more restrictive regulatory environment. We do not find any cultural distance impact on this choice. Various implications are discussed.

Keywords: acquisitions; alliances; European Union; emerging economies; institutional theory; international management; Brazil; Russia; India; China; regulatory factors; institutional factors; culture; regulations.

DOI: 10.1504/EJIM.2007.015654

European Journal of International Management, 2007 Vol.1 No.4, pp.315 - 328

Available online: 06 Nov 2007 *

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