Market response to internationalization strategies: Evidence from Indian cross-border acquisitions

摘要

As a result of the liberalization policy in 1991, the Indian economy witnessed dramatic growth, and changes in the domestic market and firm activities, specifically in relation to the expansion strategies of Indian firms across borders. Indian firms developed their existing skills in production capabilities and process R&D by acquiring technology focussed firms in advanced markets. Indian companies have ventured abroad in the software, biotechnology, automotive and oil sectors. They have successfully adopted internationalization strategies and have become globally competitive. India has transformed its image from being a foreign direct investment destination to a major emerging foreign direct investor. The strategies adopted by Indian companies for their internationalization are: outsourcing, geographic diversification, joint ventures, and cross-border mergers and acquisitions. Cross-border acquisition is an important corporate strategy that enables firms to extend their current businesses to new markets, leverage their current capabilities, and diversify into related markets.