Acquirer’s corporate reputation in cross-border acquisitions: the moderating effect of country image
Journal of Product & Brand Management
ISSN: 1061-0421
Article publication date: 16 November 2018
Issue publication date: 7 December 2018
Abstract
Purpose
The purpose of this paper is to investigate whether, in the context of a cross-border acquisition, the acquirer’s country image (CI) could moderate the relationship between the acquirer’s corporate reputation (CR) and consumers’ repurchase intentions towards the products of the post-acquisition target.
Design/methodology/approach
The authors examined the roles played by the acquirer’s CR and the acquirer’s CI on consumer behaviour by considering an Italian target firm with a high reputation and comparing four foreign acquiring firms with different combinations of CR (poor/good) and CI (high/low).
Findings
It was found that both CR and CI have a significant impact on Italian consumers’ intention to repurchase the products of the post-acquisition target. Furthermore, the results show a greater increase in consumers’ repurchase intentions when a good reputation of the acquirer is paired with a high CI for the acquirer, but a high CI cannot compensate for a poor CR.
Originality/value
The research investigates, in the context of cross-border acquisitions (CBAs), the impact of the acquirer’s CR and the acquirer’s CI on the host country consumers’ repurchase intentions after the CBA, which has not previously been thoroughly examined. It can help managers to understand the conditions under which CBAs will be favourably evaluated.
Keywords
Acknowledgements
The authors are deeply grateful to the anonymous reviewers and the Guest Co-Editors of this special issue for their insightful comments on earlier versions of this paper. They are particularly grateful to Professor Nicolas Papadopoulos for the helpful comments we received at the XXXV AIDEA conference (Rome, 2017).
Citation
Matarazzo, M., Lanzilli, G. and Resciniti, R. (2018), "Acquirer’s corporate reputation in cross-border acquisitions: the moderating effect of country image", Journal of Product & Brand Management, Vol. 27 No. 7, pp. 858-870. https://doi.org/10.1108/JPBM-10-2017-1640
Publisher
:Emerald Publishing Limited
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