Abstract
This paper focuses on the brown-field entry mode, as a special case of acquisition, in which the resources transferred by the investor dominate over those provided by the acquired firm. We see this mode as having particular relevance for entry strategies in emerging markets. The choice of entry mode is analyzed on the basis of a framework utilizing both resource-based and transaction-cost theories. The resource requirements have to be matched with resources available to the investor through an acquired firm, and the decision has to account for the costs of acquiring and integrating the resources.
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*Klaus E. Meyer is Research Professor at the Center for East European Studies, Copenhagen Business School, Denmark. His research focuses on foreign investment in emerging markets.
**Saul Estrin is Professor of Economics and Deputy Dean, London Business School, UK. His research focuses on privatization, corporate governance, direct foreign investment and transition economies.
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Meyer, K., Estrin, S. Brownfield Entry in Emerging Markets. J Int Bus Stud 32, 575–584 (2001). https://doi.org/10.1057/palgrave.jibs.8490985
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DOI: https://doi.org/10.1057/palgrave.jibs.8490985