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The effects of acquisition on the growth of new technology-based firms: Do different types of acquirers matter?

Xiao, Jing LU (2015) In Small Business Economics 45(3). p.487-504
Abstract
The growth of new technology-based firms (NTBFs) is usually restricted by their limited ownership and management structures. This paper explores whether acquisition, particularly that by multinational enterprises (MNEs), promotes the growth of NTBFs. Based on Swedish micro-level longitudinal data, this study further distinguishes between Swedish MNEs and foreign MNEs as acquirers and disentangles their different acquisition effects on the growth of NTBFs. Based on a large sample of Swedish NTBFs entering from 1997 to 2002 and being followed until 2009, this paper uses fixed-effects model combined with inverse-probability-of-treatment weights to account for endogeneity of acquisition arising from both time-invariant and time-varying... (More)
The growth of new technology-based firms (NTBFs) is usually restricted by their limited ownership and management structures. This paper explores whether acquisition, particularly that by multinational enterprises (MNEs), promotes the growth of NTBFs. Based on Swedish micro-level longitudinal data, this study further distinguishes between Swedish MNEs and foreign MNEs as acquirers and disentangles their different acquisition effects on the growth of NTBFs. Based on a large sample of Swedish NTBFs entering from 1997 to 2002 and being followed until 2009, this paper uses fixed-effects model combined with inverse-probability-of-treatment weights to account for endogeneity of acquisition arising from both time-invariant and time-varying heterogeneity across firms. The findings show that acquisition by Swedish MNEs significantly improves the growth of NTBFs, but only when it comes to the growth in employees. In contrast, acquisition by both foreign MNEs and Swedish domestic enterprises is not found to have any significant effects on the growth in either employees or sales of NTBFs. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Selection and treatment effects, weights (IPTW), Inverse-probability-of-treatment, Multinational enterprises (MNEs), Firm growth, New technology-based firms (NTBFs), Acquisition
in
Small Business Economics
volume
45
issue
3
pages
487 - 504
publisher
Springer
external identifiers
  • wos:000360240000002
  • scopus:84940439020
ISSN
0921-898X
DOI
10.1007/s11187-015-9656-y
language
English
LU publication?
yes
id
b33ff0ba-88af-498e-8127-e833b820702c (old id 7964818)
date added to LUP
2015-09-22 12:00:26
date last changed
2017-01-29 03:20:37
@article{b33ff0ba-88af-498e-8127-e833b820702c,
  abstract     = {The growth of new technology-based firms (NTBFs) is usually restricted by their limited ownership and management structures. This paper explores whether acquisition, particularly that by multinational enterprises (MNEs), promotes the growth of NTBFs. Based on Swedish micro-level longitudinal data, this study further distinguishes between Swedish MNEs and foreign MNEs as acquirers and disentangles their different acquisition effects on the growth of NTBFs. Based on a large sample of Swedish NTBFs entering from 1997 to 2002 and being followed until 2009, this paper uses fixed-effects model combined with inverse-probability-of-treatment weights to account for endogeneity of acquisition arising from both time-invariant and time-varying heterogeneity across firms. The findings show that acquisition by Swedish MNEs significantly improves the growth of NTBFs, but only when it comes to the growth in employees. In contrast, acquisition by both foreign MNEs and Swedish domestic enterprises is not found to have any significant effects on the growth in either employees or sales of NTBFs.},
  author       = {Xiao, Jing},
  issn         = {0921-898X},
  keyword      = {Selection and treatment effects,weights (IPTW),Inverse-probability-of-treatment,Multinational enterprises (MNEs),Firm growth,New technology-based firms (NTBFs),Acquisition},
  language     = {eng},
  number       = {3},
  pages        = {487--504},
  publisher    = {Springer},
  series       = {Small Business Economics},
  title        = {The effects of acquisition on the growth of new technology-based firms: Do different types of acquirers matter?},
  url          = {http://dx.doi.org/10.1007/s11187-015-9656-y},
  volume       = {45},
  year         = {2015},
}