Acquisitions versus greenfield investments: International strategy and management of entry modes

AW Harzing*

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

This paper adds an important explanatory variable to the well‐established list of factors shown to influence the choice between foreign acquisitions and greenfield investments: the international strategy followed by the multinational company (MNC) in question. The MNC's international strategy is subsequently linked to the management of the two different entry modes by showing that differences in strategy are reflected in different headquarters—subsidiary relationships for acquisitions and greenfields. Some aspects of this relationship are also shown to change over time, a process that is mediated by the MNC's strategy.
Original languageEnglish
Pages (from-to)211-227
JournalStrategic Management Journal
Volume23
Issue number3
DOIs
Publication statusPublished - Mar 2002
Externally publishedYes

Keywords

  • acquisition
  • greenfield
  • international strategy
  • entry mode
  • MULTINATIONAL-ENTERPRISE
  • ORGANIZATIONAL CONTROL
  • START-UP
  • CHOICE
  • ISOMORPHISM
  • MECHANISMS
  • OWNERSHIP
  • MARKETS

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