Ability

cognitive

, 388

competitive

, 184

corporate

, 499

decision-making

, 387

decreasing

, 358

differential

, 346

firm’s

, 211, 349, 416

limited processing

, 388

reduced

, 34, 365

subsidiary’s

, 346

unique

, 22, 83

Abnormal return (AR)

, 193, 195–196

Academy of International Business (AIB)

, 65

Acquirers

, 26–27, 39, 157–158, 185, 189, 191–194, 199, 202, 277–278, 286, 305, 495, 497, 500–507, 510–511

foreign

, 278, 495, 503, 509, 511

remote

, 306

serial

, 204

Acquirers and targets

, 193, 278

Acquirers mitigate

, 275

Acquiring firms

, 26, 39, 158–160, 166, 168–169, 176–177, 185, 201, 311, 503, 509

foreign

, 495

Acquisition activity

, 284

foreign

, 336

Acquisition behavior

, 293

Acquisition benefits

, 510

Acquisition decisions

, 290

Acquisition experience

cross-border

, 501

previous

, 200

Acquisition experience moderates

, 301

Acquisition ownership

, 323

decision

, 297, 299

strategy

, 25

Acquisition performance

, 196, 202, 332, 500, 512, 515

border

, 201

Acquisition process

, 200, 496–497, 500

post-cross-border

, 323

Acquisitions

border

, 204, 501

corporate

, 42, 201, 205, 336

emerging market FDI

, 179, 293, 333

experience in

, 196–197, 199–200

following horizontal

, 292, 512

foreign market

, 335

high-technology

, 203

international, 131–133

, 179, 199, 202–203, 410, 422, 493

low equity

, 331

majority

, 23, 309–310, 313, 319–320, 324–325, 328–329

minority

, 23, 300, 310, 312

outward

, 335

post

, 280

Additional rents, 521–522

Additivity vs. arbitrage, 83–84

Agreement

, 77, 85, 217, 373, 406, 450–451, 505, 507, 526

single market

, 138

structural

, 75

AIB, See Academy of International Business (AIB)

Alliance networks

, 522

foreign

, 529

international

, 530

Alliance performance

, 133, 267

international

, 133, 538

Alliance success, 113–114

Alliances

domestic interfirm

, 529

individual

, 522

initiating

, 522

international

, 181, 523, 529–531

non-domestic

, 526, 529

Allocation

effective

, 522

headquarters resource

, 131, 467

joint

, 33

nonmarket

, 466

American economic growth

, 470

Asset specificity

, 255, 257, 259–260, 262–263, 450, 466

Assets

, 25, 29, 38, 245, 273, 275–277, 280, 299, 309, 415, 425, 427–429, 440–441, 520–521, 525

corporate

, 498

firm’s

, 283, 532

foreign

, 534

generating

, 428

intermediary

, 280

knowledge-related

, 349

local

, 180, 277, 279, 282, 293

sharing proprietary

, 162

strategic

, 19, 31, 152, 237, 290

tangible

, 254

transferable

, 514

undesired

, 273, 277, 280, 286

Bargaining costs

, 36–37, 446, 450–457, 460, 462–464

Bargaining costs and monitoring costs

, 36–37, 454, 460, 462–464

Barriers

, 92, 94, 189, 207, 212, 335, 409, 439, 472, 520–521, 525

cultural

, 63, 86, 178, 419

institutional systems erect

, 23, 129

Behavior

anti-competitive

, 213

buyer’s

, 217

combined firm’s

, 502

consumer

, 496, 510

consumer’s

, 496, 509

conventional

, 228

decision-making

, 95

effective

, 77

foreign market entry

, 65, 266

ineffective

, 85

international

, 226, 234

intra-team

, 389, 397

irresponsible

, 364

loyal

, 400

managerial

, 101, 468

organizational

, 66, 72, 94, 103, 105, 221, 294, 400–402

out-group

, 380

predictive

, 64

respective

, 386

responsible

, 19

small group

, 42

social

, 72

team learning

, 400

Benefits

additional

, 115

earlier-discussed

, 413

intangible

, 510

long-recognized

, 410

perceived

, 137, 141

potential

, 113, 142, 248, 298, 524

recognized

, 522

relative

, 139–140

signaling

, 410

Biases

common method

, 167, 252, 264, 268, 454, 469

self-reporting

, 252

social desirability

, 253

subconscious

, 62

Bonding costs

, 36–37, 452, 454–456, 460, 462–465

Business

conduct

, 210

cross-border

, 96

everyday

, 372

global

, 11

independent

, 414

local

, 165

publishing

, 477

retail

, 438

small

, 432

Business environment

foreign

, 214

international

, 198

local

, 164

Business operations

international

, 518

large-scale

, 248

Business partners

distant

, 214

domestic

, 215

focal

, 113

foreign

, 208, 210, 213, 215

international

, 210

potential

, 214

Business relationship learning and commitment

, 441

Business relationships

, 27, 207, 209, 212–214, 437

international

, 130

potential

, 80

Business-to-business relationships

, 217

Buyers

distant

, 219

international

, 25, 207–209, 218

organizational

, 27, 213, 217

Capabilities

combinative

, 345

demonstrated robust

, 482

effective R&D

, 360

firm-specific

, 291

high R&D

, 246

higher order

, 39, 523

managerial

, 141

natural

, 143

organizational

, 265, 308

redeploying

, 521

strategic

, 19

strengthened international competitive

, 228

subsidiary’s

, 345

supplement

, 523

tacit

, 359

technological

, 331, 345, 351

CB. See Cross-border (CB)

CBAs. See Cross-border acquisitions (CBAs)

China’s investments

, 230, 233

total

, 229–230

China’s number

, 232

China’s ODI motivations

, 236

China’s outward

, 237

China’s outward FDI

, 227–230, 233

Chinese firms

, 31, 132, 235, 237, 333, 335

Chinese MNEs

, 31, 228–229, 232, 234

Cluster

compatible home

, 128

cultural

, 118, 120, 128, 168, 170

five

, 117

institutional

, 23, 118, 123, 125

neutral home

, 123

Cluster algorithm

, 116

distance-based

, 116

Cluster combinations

, 120–121

Cluster formation

, 89, 132, 181, 205

Cognitive fluency

, 216

Common method variance (CMV)

, 179, 252, 392, 400, 454, 467

Communication

, 75, 77, 79–80, 84, 109, 111, 188–190, 208, 210–213, 215, 219, 450–451, 474, 484, 486

blocks

, 76

close

, 452

costs

, 76, 448

critical

, 95

cross-national

, 56

effective

, 69, 75, 77, 212

electronic

, 210

failure

, 450

increased

, 463

theory

, 212

Communication costs

, 76, 448

Communication failure

, 450

Communication theory

, 212

Companies

acquiring

, 167, 169

domestic

, 284, 349

editorial

, 482

gas

, 230

individual

, 229

international

, 470

investing

, 162, 229

local

, 248

studied

, 521

technology

, 230

Company culture, common

, 452–453, 465

Compatibility concept

, 116

Compatibility, institutional

, 17, 123

Complementarity

capability

, 201

organizational

, 132

Complementary assets

, 249, 521

exploiting

, 538

Complementary resources

, 114, 244, 306

local

, 246–247

Complexity

cognitive

, 59, 64–65

cultural

, 451

organizational

, 364, 409

world’s

, 73

Confirmatory factor analysis (CFA)

, 36, 100, 252, 455

Conflict

level of

, 33, 373–374, 387

mediating role of

, 387

relational

, 380–381, 384, 387–388, 391

Consequences

behavioral

, 420

cultural

, 66

researched

, 384

Consumer racism

, 514

Consumer responses

, 441, 496

Consumer’s choices

, 509

Consumers

analyzing local country

, 495

conscious

, 81

local

, 496

potential

, 437

tease

, 438

Contracts

complete

, 80

enforcing

, 213

formal

, 360

Contributions

classical

, 490

comparative

, 241

distinctive

, 356

following

, 138

intended

, 253

significant

, 354

theoretical

, 49

unique

, 60–61

worthwhile

, 151

Coordination, distance hinder

, 467

Corporate culture

common

, 452

entrepreneurial

, 346

Corporate social responsibility (CSR)

, 32, 34, 363–371, 373–378, 410, 420, 499, 501, 512

Costs

administrative

, 305

associated

, 307

co-owner-related

, 164

contractual

, 139

direct

, 112, 453, 462

due-diligence

, 140

explicit

, 453

extra

, 446, 451–452

managerial

, 409

physical

, 208

relative

, 150

switching

, 513

transport

, 89

unavoidable

, 428

Costs of distance

, 27–31

Cross-border (CB)

, 19, 23–24, 26–27, 130–132, 181–187, 201, 205–206, 235–236, 292–293, 297–299, 313–315, 331–333, 495–497, 499–501, 509–515

acquisition activities

, 309

acquisition by Finnish MNEs

, 315

acquisition information

, 309

acquisition/majority CB acquisition by acquiring MNEs

, 313

acquisitions

, 297–301, 304–313, 315, 317, 320, 322–323, 330–331

sacquisition equity

, 297, 310

Cross-border acquisition abandonment

, 131, 293, 333

Cross-border acquisition literature

, 497

Cross-border acquisition performance

, 183, 185, 187, 189, 191, 193, 195, 197, 199, 201, 203, 205, 469, 492, 514

Cross-border acquisitions

, 23–24, 26–27, 179, 181, 183–184, 235–236, 297, 299, 331–333, 335, 495–497, 499–501, 503, 505, 509–511

Cross-border (CB)

, 19, 23–24, 26–27, 130–132, 181–187, 201, 205–206, 235–236, 292–293, 297–299, 313–315, 331–333, 495–497, 499–501, 509–515

acquisition activities

, 309

acquisition by Finnish MNEs

, 315

acquisition information

, 309

acquisition/majority CB acquisition by acquiring MNEs

, 313

sacquisition equity

, 297, 310

Cross-border acquisitions (CBAs)

, 23–24, 26–27, 179, 181, 183–184, 235–236, 297–301, 299, 304–313, 315, 317, 320, 322–323, 330–331, 331–333, 335, 495–497, 499–501, 503, 505, 509–511

abandonment

, 131, 293, 333

analyzed

, 331

announcements

, 193, 196

context of

, 306, 308

determinants of

, 299, 304

distance on equity commitment in

, 305, 308–309

equity commitment in

, 299, 305, 307–310, 318, 330

in host country

, 315

literature

, 497

long-term

, 201

in low-tech industries

, 312

managing

, 188

minority

, 312, 318, 323, 330

operations by US bidder firms

, 198

ownership choices in

, 299–300

performance

, 183, 185, 187, 189, 191, 193, 195, 197, 199, 201, 203, 205, 469, 492, 514

performing

, 192

preferred majority

, 318

preferred partial

, 315

ranging

, 300

Cross-country distance

, 31, 403–406, 409–413, 416, 418

Cultural and psychic distance

, 24–27

Cultural compatibility

, 17, 22–23, 107–109, 111, 113, 115–117, 119, 121–123, 125, 127, 129, 131, 133

Cultural differences

, 39, 42, 67, 87, 90, 92, 100–101, 133, 182, 184–185, 187, 211, 220–221, 422–423, 500–503

higher

, 451

national

, 89, 104

Cultural differences and capability transfer in cross-border acquisitions

, 201

Cultural differences influence

, 481

Cultural distance

added

, 66, 88, 131, 421, 468

defined

, 165

deviations in managers’ perceptions of

, 95, 98

dimension of

, 25, 98–99

double-edged sword of

, 132, 422, 514

effect of

, 25, 68, 104, 154, 211, 234, 323, 423, 493–495, 507

influence of

, 99, 234, 511

marginal

, 422

national

, 53, 103, 205, 220, 421, 469, 492, 514

objective

, 25, 96, 102

operationalized

, 31, 169

perceived

, 97, 101–102

reliable measure of

, 25, 92

role of

, 25, 64

Cultural distance deviation

, 97–99

Cultural misfit

, 89

Culture

distant

, 510

quantifying

, 105

Demands

coherent

, 372

environmental

, 92, 95

global

, 367

inconsistent

, 372

institutional

, 372, 377

internal

, 33, 365, 374–375

plural

, 372

prioritization of

, 363, 371

prioritizing

, 369, 372

Demands of local stakeholders

, 364, 368, 373

Developed economies

, 24, 28, 165, 312, 318, 320, 323

Distance effects

, 41, 51, 71, 109, 304, 355

continuous

, 32, 356

differential

, 32

institutional

, 30, 133, 154, 281, 296

negative

, 22, 108, 323

Distance stimuli

country-level psychic

, 37, 473, 477

institutional

, 35, 405, 412, 418

measure psychic

, 65, 202, 220, 266, 420

teams process

, 413

Economic growth

, 89, 110–111, 169, 171, 315–316, 319, 321, 324, 326, 328, 351, 420

Economic opportunities

, 320

Economic performance

, 89, 103, 109, 122, 132, 154, 268, 295, 336, 538

Emerging market institutions

, 141

Emerging market MNEs

, 30, 227, 229, 231, 233, 235, 237

Enforcement structures

alternative

, 78

formal

, 78, 82

Entry mode research

augmenting TCE-based

, 28

foreign

, 105, 295

international

, 179, 202, 265, 292

Entry-mode research, previous

, 240

Environment, political

, 99, 106

Environmental characteristics

, 91, 93

Equity

, 139, 150, 159, 161, 179, 242, 247, 279, 281, 292–293, 300, 302, 306–308, 332, 334

Equity choice

, 299

Equity control

, 67, 267, 302–303

partial

, 301–303

partial/full

, 302

Euromoney Country Risk (ECR)

, 167, 169

Firm performance

, 99–100

Firms

accounting

, 275

acquired

, 167, 199

advanced economy

, 358

co-located

, 342

developed economy

, 304

domestic

, 108–109, 131, 449, 451, 469

embedded

, 534

external

, 260, 347

filed

, 466

focal

, 283

interconnected

, 537

international

, 193

medium-sized

, 65

Foreign acquisitions

analyzed

, 178

analyzing survival of

, 177–178

context of

, 159, 162, 177

divested

, 158

success of

, 181, 205, 422

survival of

, 166–168, 171, 176

value of

, 158

Foreign direct investments (FDI)

, 2, 109–112, 114–116, 129, 131–132, 158–161, 177–179, 201–202, 225–226, 235–237, 295–296, 336, 469–470, 518, 520

behaviors

, 178

distance, costs of distance, and

, 111–113

flows

, 22–23, 107, 119–120, 125, 129, 474

inflows

, 110–111, 122, 125, 128, 333, 446

institutional and cultural profiles and

, 109–111

location choice

, 132, 233, 335

location choice of Chinese multinationals

, 236

number

, 229

outflows

, 128

project

, 114, 242, 353

sentry mode

, 420

similarity, compatibility

, 114–116

survival

, 520

theory

, 535

Foreign direct investments

distance, costs of distance, and

, 111–113

institutional and cultural profiles and

, 109–111

similarity, compatibility

, 114–116

Foreign market commitments

, 162

Foreign ownership

, 269

Foreign subsidiaries

, 162–163, 179–180, 239–240, 242–243, 247–248, 262–263, 265–266, 341–352, 355–357, 359–360, 446–447, 463–465, 524–526, 528–529, 531–533

GDP, See Gross domestic product (GDP)

Geographic differences

, 404, 410, 412

Geographic distance

, 29, 32, 42, 49, 56–57, 59, 63, 208, 275, 283, 288–289, 305–307, 332, 335–336, 406–407

moderate

, 302

replaced

, 50

Global orientation

, 2, 6, 9

Global outsourcing

, 361

Globalization

, 9–10, 13, 65, 87, 104, 153, 181, 198, 220, 359, 446, 538

Governance costs

categories of

, 37, 452, 464

dynamics

, 445–446, 448, 452

effects

, 451

elevated

, 449–450

ex post

, 36, 450–451

in foreign direct investments

, 470

in headquarters-subsidiary relationships

, 467

increased ex post

, 462

modeling

, 464

perceived

, 455

and performance

, 449, 464

quantifying

, 450

treated

, 452

variables

, 456

zero

, 450

Governance indicators

cWorldwide

, 479

individual

, 492

Governance infrastructure

, 110, 131, 334, 491

Governance infrastructure moderates

, 110

Governance quality

, 105, 295

Governance structures

, 36, 244, 248–249, 261–262, 447

alternative

, 240

cost-efficient

, 260

efficient

, 449

hierarchical

, 240–242, 244, 246, 261–263, 450

Group faultlines

, 381, 399, 402

Gross domestic product (GDP)

, 96, 106, 169, 283, 474, 478–482, 486

growth rate

, 169–170

per capita

, 121, 146, 147, 170, 177, 283, 311, 474, 479–482

Groups

community

, 136

country-level

, 261

homogeneous

, 504

homogenous

, 81

large

, 101

organizational

, 66, 401

overlapping

, 82

reference

, 169, 173, 498

social

, 402

Hazards

institutional

, 263, 295

relational

, 142–143, 150

Host countries

developing

, 137

distant

, 233

emerging

, 24, 30

emerging market

, 30, 138

foreign

, 25

high risk

, 315

multiple

, 177

particular

, 164

potential

, 129, 344

researched

, 233

respective

, 342

subsidiary’s

, 370

Host country development

, 165–166

Host country experience

, 164–165

Host country firms

, 361

Host country knowledge

, 348

Host country level

, 160

Host institutions

, 139

Human capital

, 146–147, 202, 331, 370

Human resource management policies

, 13

Individualism

, 97, 128, 169, 407

Industrial activity

, 350, 351

Industrial development

, 24, 26, 29, 56, 185, 186, 188, 189, 190, 194, 198

Industries

chemical

, 169

food

, 435

publishing

, 477–478

Industry development

, 481

Information asymmetries

, 29, 139, 140, 237, 274, 275, 276, 277, 278, 280, 290

Information costs

, 36, 37, 105, 455

Institutional distance (IDIST)

, 145

Institutional diversity

, 71–72

Institutional overlap

, 70

International acquisitions

, 131–133, 179, 199, 202–203, 410, 422, 493

International alliances

, 181, 523, 529–531

International business (IB)

Coleman’s boat to distance research in

, 50–61

cultural distance in

, 93–94

data collection procedure

, 97

data profile and research setting

, 96

deviations in managers’ perceptions of

, 95–96

distance research in

gravity models

, 48–49

Kogut and Singh Index

, 50

turning point

, 49

literature

, 48

objective vs. perceptual cultural distance

, 94–95

International human resource management (IHRM)

, 3, 7, 10

International joint ventures (IJVs)

, 3, 7, 10

Joint ventures (JVs)

, 160

Knowledge-related assets

, 349

Low equity acquisitions

, 331

Loyal behavior

, 400

Managerial behavior

, 101, 468

Negative Regulatory Institutional Distance

, 141–142

Neo-institutional sociology (NIS)

, 70, 74–75

and international management

, 75–76

New institutional economics (NIE)

, 70, 72–73

and international management

, 74

Non-domestic alliances

, 526, 529

Organizational behavior

, 66, 72, 94, 103, 105, 221, 294, 400–402

Organizational capabilities

, 265, 308

Partner characteristics

, 113–114

Return on assets (ROA)

, 99

Serial acquirers

, 204

Signaling benefits

, 410

Single market agreement

, 138

Small and medium enterprises (SMEs)

, 138

Small group behavior

, 42

Social behavior

, 72

Social desirability

, 253

Structural agreement

, 75

Subsidiary

, 346

Transaction costs vs. transaction thickness

, 84–85

Value of distance

, 31–36

Wholly-owned subsidiary (WOS)

, 160