The Effect of Corporate Productivity on the Alliance versus Acquisition Choice by Developing- Country Firms: The Performance Consequences And Moderation of Institutional Voids

Abstract

With the increasingly close economic and trading relationships among countries the issue of decision making on the cooperation strategy (between M&A or strategic alliances) of enterprises has also received significant attention of the academic community However compared to the past literature which mostly focuses on enterprises of more developed economies our study focuses on enterprises of developing countries and we explore whether the combination of corporate strategic choices and productivity of the enterprise can effectively enhance their firm performance Our study analyzes enterprises of the same industrial categories in 13 developing countries to test whether the enterprises’ productivity will affect their strategic decisions in these developing countries and we also test whether the combination of strategic choices and their relative productivity can play a role in improving the company's performance In addition we also test the potential moderating effects of the environmental factors in developing countries such as country-level financial liquidity and the degree of government corruption to see whether these factors have an impact in the above-mentioned relationships This study concludes that the strategic decisions made by these enterprises in the above-mentioned developing countries are related to their relative productivity and that the relationship is positive between enterprises with high productivity choosing M&A and their financial performance

Date of Award	2020
Original language	English
Supervisor	Chiung-Hui Tseng (Supervisor)