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Expatriation as a Bridge Over Troubled Water: A Knowledge-Based Perspective Applied to Cross-Border AcquisitionsHEC Montréal, Canada
EDHEC Business School, France
The University of Western Ontario, Canada Do expatriate managers fulfil the role of value-seeking connectors in cross-border acquisitions? Building from the organizational knowledge and the MNC literature, this paper focuses on the use of expatriate managers for transferring experience-based knowledge within the MNC and its impact on the survival of acquired subsidiaries. Using a sample of cross-border acquisitions by Japanese MNCs, we analysed the impact of expatriate managers on the relationship between the acquirers industry, host country and acquisition experience and the survival of the acquired subsidiary. Results show that the contribution of expatriation to the acquired firms survival varies considerably depending on the type of experience considered. In fact, connectivity through expatriation is costly and only when appropriately sent abroad do expatriate managers build an effective bridge over the troubled water that characterizes the challenging post-acquisition integration.
Key Words: mergers and acquisitions knowledge transfer expatriate managers post-acquisition integration international experience
Organization Studies, Vol. 26, No. 10,
1455-1476 (2005) This article has been cited by other articles:
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