Intangible resources and cross-border acquisition decisions: The impact of reputation and the moderating effect of experiential knowledge

摘要

Drawing from the resource-based view, signaling theory, and internationalization literatures, we argue that a key intangible resource - reputation - influences the decision to engage in cross-border acquisitions (CBAs). Reputation facilitates foreign market entry by reducing the risks and costs inherent in such strategic moves, while acting to curb potentially risky decisions. Based on a longitudinal sample of 869 acquisitions conducted by European and US firms, our study confirms the inverted U-shaped relationship between a firm's reputation and the likelihood of undertaking CBAs. We also find that international experiential knowledge moderates the relationship between reputation and the likelihood of additional CBAs. Our research contributes to the growing literature on the influence of intangible strategic resources, especially that of reputation, on foreign market entry strategies.