Acquisition Versus Greenfield
Acquisitions versus Greenfield Investments: International Strategy and Management of Entry Modes Author(s): Anne-Wil Harzing Reviewed work(s): Source: Strategic Management Journal, Vol. 23, No. 3 (Mar., 2002), pp. 211-227 Published by: John Wiley & Sons Stable URL: http://www.jstor.org/stable/3094362 . Accessed: 31/01/2012 11:49
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Strategic Management Journal
Strat. Mgmt. J., 23: 211-227 (2002) DOI: 10.1002/smj.218
ACQUISITIONS VERSUS GREENFIELD INVESTMENTS: INTERNATIONAL AND STRATEGY MANAGEMENT ENTRYMODES OF
ANNE-WIL HARZING* Faculty of Economics and Commerce, University of Melbourne, Parkville Campus, Melbourne, Victoria,Australia
Thispaper adds an importantexplanatoryvariable to the well-established list offactors 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 relationshipsfor 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.
INTRODUCTION The choice of entry
Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.
John Wiley & Sons is collaborating with JSTOR to digitize, preserve and extend access to Strategic Management Journal.
http://www.jstor.org
Strategic Management Journal
Strat. Mgmt. J., 23: 211-227 (2002) DOI: 10.1002/smj.218
ACQUISITIONS VERSUS GREENFIELD INVESTMENTS: INTERNATIONAL AND STRATEGY MANAGEMENT ENTRYMODES OF
ANNE-WIL HARZING* Faculty of Economics and Commerce, University of Melbourne, Parkville Campus, Melbourne, Victoria,Australia
Thispaper adds an importantexplanatoryvariable to the well-established list offactors 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 relationshipsfor 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.
INTRODUCTION The choice of entry