Multinational Enterprises and Emerging Economies
Show Less

Multinational Enterprises and Emerging Economies

Klaus E. Meyer

Guided by the overarching question “how and why does the emerging economy context matter for business?”, this collection brings together key contributions of Klaus Meyer on multinational enterprises (MNEs) competing in, and originating from, emerging economies. The book also explores how outward investment strategies contribute to building internationally competitive MNEs.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 9: Brownfield Acquisitions: A Reconceptualization and Extension

Saul Estrin and Klaus E. Meyer

Abstract

Firms seeking specific complementary resources to pursue their growth strategy in emerging markets may use ‘brownfield’ acquisitions to provide access to resources that are embedded in existing firms. This strategy requires a fundamental restructuring of the acquired firm to replace many of its resources and organizational structures. In this paper, we review the concept of brownfield acquisition, establish its empirical relevance outside of transition economies, explore its theoretical and empirical antecedents, and discuss its implications for theorizing in international business. Our empirical results based on a six-country survey in emerging markets show that brownfield acquisitions are most likely for projects that are more integrated with the parent’s global operations, and where local firms are weak and institutions are strong. The concept provides a focal point for research on the resource-based view by illuminating the process of resource combination in firm growth. It also provides an example of where different aspects of the institutional framework may have contrary effects on various elements of business strategy.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.