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

Authors

  • Anne-Wil Harzing

    Corresponding author
    1. Faculty of Economics and Commerce, University of Melbourne, Parkville Campus, Melbourne, Victoria, Australia
    • Department of Management, Faculty of Economics and Commerce, University of Melbourne, Parkville Campus, Melbourne, Victoria 3010, Australia.
    Search for more papers by this author

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. Copyright © 2002 John Wiley & Sons, Ltd.

Ancillary