Research Output
A parent company's ability and cross-border M&A performance: an empirical analysis.
  Drawing from Berry’s nine-dimension-theory, the institutional distance discussed within this study was divided into four dimensions that include the regulation distance (including political distance and legal distance), economic distance, cultural distance and knowledge distance.
Empirical data, showed reverse conditional influence around the effects of “Liability of Foreignness”. We combine both the macro and micro level factors i.e. institutional distance and parent company’s core competency (ability).
Analysis was based on 60 samples of companies that completed cross-border
Results indicate that cultural distance has a negative relationship with cross-border M&A performance, while the parent company's absorptive capacity has a strong positive relationship with cross-border M&A performance. Furthermore, both play a mediate role in institutional distance, which has a measurable effect on cross-border M&A performance.

  • Type:


  • Date:

    21 February 2019

  • Publication Status:


  • Publisher

    Center for Open Science

  • DOI:


  • ISSN:


  • Library of Congress:

    HD28 Management. Industrial Management

  • Dewey Decimal Classification:

    658 General management

  • Funders:

    University of Oxford


Fascia, M., lu, L., tan, H., & michael, S. (2019). A parent company's ability and cross-border M&A performance: an empirical analysis. Journal of Strategy, Operations & Economics, 6(2), 23. doi:10.13140/RG.2.2.15397.14565



Institutional distance; internationalization; absorptive capacity; cross-border merger and acquisition; performance;

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