INTERNATIONAL EXPANSION THROUGH START-UP OR ACQUISITION: A LEARNING PERSPECTIVE.

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Abstract
This study brings a fresh approach—a learning perspective—to the literature examining whether firms expand internationally through start-ups or acquisitions. Hypotheses concern how this strategic choice is influenced by a firm’s multinational diversity and product diversity. The results show that multinational diversity leads to foreign start-ups rather than acquisitions. Product diversity has a curvilinear effect on the tendency to use start-ups. The curvilinear effect becomes weaker at higher levels of multinational diversity.

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