Beyond borders: How do Firm-Specific Capabilities and Top Management Team Characteristics influence Target Country Selection?
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2024-07-04
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en
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Abstract
This study examines how firms’ innovative and financial capabilities influence their choice of
target country in the context of cross-border mergers and acquisitions (CBMAs). The goal is to
investigate how top management team (TMT) tenure diversity moderates the relationship
between firm-specific capabilities and target country selection. A quantitative analysis was
conducted using data from 634 announced M&A transactions involving Dutch listed companies
between 2000 and 2023. The findings indicated that financial capabilities negatively influence
the novelty of geographic location in target country selection, while innovative capabilities have
a positive impact. Furthermore, TMT tenure diversity significantly moderates the relationship
between financial capabilities and target country selection, but not between innovative
capabilities and market selection. This study provides new insights into the strategic importance
of integrating firm-specific resources with managerial diversity in international market
selection (IMS). The findings highlight the need for diverse managerial experiences to enhance
strategic decision-making and mitigate the complexities and uncertainties involving CBMAs.
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Faculteit der Managementwetenschappen