| The management literature on cross border mergers and acquisitions has focused primarily on the goals, risk diversification, entry mode selection, or benefits arising from selection of this organizational strategy. However, the role that precursors play in explaining patterns of these mergers and acquisitions has not been thoroughly investigated. Utilizing concepts from strategy and international management, I address factors related to the completion of announced cross border mergers and acquisitions. The institutional context or the dominant institutional forces play an active role in the cross border merger and acquisition behavior of companies and notable patterns of international activity should be associated with these forces. Globalization has necessitated a re-definition of the institutional context and given an increased competitive environment. The study looks at cross border mergers and acquisitions between 1985 and 1999, involving at least 5% ownership of the company where the transaction occurred, and which were valued at {dollar}1 million (US) or more. |
