Cultural distance and post-acquisition performance: the role of absorptive capacity

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dc.contributor.authorMoura, Stephanie en
dc.contributor.authorFalaster, Christianen
dc.contributor.authorSilva-Rêgo, Bernardoen
dc.date.accessioned2025-04-25T11:24:15Z
dc.date.available2025-04-25T11:24:15Z
dc.date.issued2022-04-30en
dc.description.abstractPurpose: Cultural distance can be a challenge for internationalization. However, in some instances, it is possible that different cultures could represent a benefit for multinational enterprises (MNEs) from emerging contexts. Drawing on the knowledge-based view (KBV), the authors propose that greater cultural distances lead to benefits for multinationals seeking to absorb new knowledge overseas. Design/methodology/approach: The authors performed ordinary least squares regressions with moderation tests over a database containing 101 cross-border acquisitions to test the study’s hypotheses. The acquisitions were performed by Brazilian firms between 1995 and 2015, targeting 24 host countries. Findings: The study’s results indicate that cultural distance positively affects the firm's post-acquisition performance and that absorptive capacity moderates these results, improving the positive effect. The study suggests that cultural diversity is an asset for the multinationals in question. Practical implications: When deciding to invest in a foreign country, managers should consider this cultural diversity as one more value creation driver, especially if the firm has well-developed innovation capabilities. Originality/value: The study’s findings contribute to the international business literature providing further evidence that emerging markets multinationals can create value in acquisitions through the firm's abilities to exploit cultural asymmetries. Thus, the authors also emphasize that absorptive capacity plays a strategic role in multinational's international strategies.en
dc.description.statusPeer revieweden
dc.description.versionAccepted Versionen
dc.format.mimetypeapplication/pdfen
dc.identifier.citationMoura, S. T. G., Falaster, C. and Silva-Rêgo, B. (2023) 'Cultural distance and post-acquisition performance: the role of absorptive capacity', International Journal of Emerging Markets, 18(12), pp.6322-6342. https://doi.org/10.1108/IJOEM-08-2021-1251en
dc.identifier.doi10.1108/ijoem-08-2021-1251en
dc.identifier.endpage264en
dc.identifier.issn1746-8809en
dc.identifier.issued2en
dc.identifier.journaltitleMultinational Business Reviewen
dc.identifier.startpage241en
dc.identifier.urihttps://hdl.handle.net/10468/17342
dc.identifier.volume32en
dc.language.isoenen
dc.publisherEmerald Publishing Ltd.en
dc.relation.ispartofInternational Journal of Emerging Marketsen
dc.rights© 2022, Emerald Publishing Limited.en
dc.rights.urihttps://creativecommons.org/licenses/by-nc/4.0/en
dc.subjectCultural distanceen
dc.subjectInternational acquisitionsen
dc.subjectPost-acquisition performanceen
dc.subjectKnowledge-based viewen
dc.subjectAbsorptive capacityen
dc.subject~Cork University Business School - Journal Articles~en
dc.titleCultural distance and post-acquisition performance: the role of absorptive capacityen
dc.typeArticle (peer-reviewed)en
dc.typejournal-articleen
oaire.citation.issue12en
oaire.citation.volume18en
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