How Digital Business Model Affects Internationalization? A Study on Ownership Choice in Cross-border Acquisitions of Digital MNEs

• Main Authors: Yu-Yuan Shih, 施友元
• Other Authors: 趙義隆
• Format: Others
• Language: en_US
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/868dec

博士 === 國立臺灣大學 === 國際企業學研究所 === 107 === This study employs the business model to distinguish digital MNEs heterogeneity and understand how the typology of the digital business model affects ownership choice in cross-border acquisitions of digital MNEs. Besides, this study extends the prior CBAs literature from the resource-based view, organizational learning perspectives, and Uppsala internationalization model. Our study was based on 664 digital MNEs’ CBAs between 2010 and 2018, using data from the Securities Data Company (SDC) Platinum database. Using logistic regression models, we statistically tested to understand how the typology of digital business model, firm-level factors and country-level factors differently influence the ownership choices of the U.S., Chinese and India digital MNEs involved in CBAs. This study found that the pure digital business model and high Internet intensity in marketing and sales increase the likelihood of full ownership in CBAs. However, high Internet intensity production and operations increase the likelihood of partial ownership in CBAs. In the firm-level factors, larger acquirer firm size and exploitation strategy increase the likelihood of full ownership in CBAs. In country-level factors, for digital MNEs from developed economies, market size increases the likelihood of full ownership in CBAs, whereas formal institutional distance reduces it. However, cultural distance and host country acquisition experience are not significantly related to the ownership choice in CBAs, thus overturning underlying assumptions of the Uppsala Internationalization model, but in line with Yamin and Sinkovics (2006) active online internationalization perspective. We offer several explanations for these different findings.