The Effect of Cross-border Acquisition Experience on Subsequent Cross-border Acquisitions: A Test of the S-shape Hypothesis

The literature generally supports the linear effect of cross-border acquisition (CBA) experience on subsequent CBA behaviour. We draw from the extended organisational learning perspective to propose an S-shaped relationship between CBA experience and subsequent CBAs. We hypothesise that the number of CBAs decreases at a low level of CBA experience, increases at a moderate level of CBA experience, and decreases again at a high level of CBA experience. Based on a sample of 1675 observations from 205 Indian MNEs, we find support for our hypothesis. Our findings contribute to the CBA literature, specifically in the context of emerging economy multinational enterprises.