Theoretical foundations of cross-border mergers and acquisitions: A review of current research and recommendations for the future

Katsuhiko Shimizu, Michael A. Hitt, Deepa Vaidyanath, Vincenzo Pisano

Research output: Contribution to journalReview article

342 Citations (Scopus)


Cross-border mergers and acquisitions (M&As) have gained in popularity over the last decade. However, research on this type of diversification strategy has not kept pace with this trend. While there is considerable research in the area, it is unfortunately fragmented, leaving gaps that need to be addressed. Herein, we examine the theoretical perspectives and research findings on cross-border M&As from three perspectives: cross-border M&As as a (1) mode of entry in a foreign market, (2) dynamic learning process from a foreign culture, and (3) value-creating strategy. Current empirical research on this topic is also tabulated and grouped by theoretical stream to indicate major findings. Most importantly, we identify gaps in the literature and highlight five important research issues that provide directions for future research.

Original languageEnglish
Pages (from-to)307-353
Number of pages47
JournalJournal of International Management
Issue number3
Publication statusPublished - 2004
Externally publishedYes



  • Cross-border M&As
  • Diversification
  • Theoretical foundation

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Finance

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