The case studies are Finnish MNEs in the manufacturing sector. Their business sectors include elevator, cranes, paper, energy, purification process, casting solu-tions, food and processing, life sciences and diagnostic applications. Table 9 shows the case studies/companies and their business sectors.
Table 9. Case Companies and Business Sector S/NO Names of
Case Studies
Business Sectors
A UPM-KYMMENE Manufacturing: Paper, forestry, biocomposites, energy, timber & biochemical, biofuels, labels, pulp & plywood B AHLSTRÖM Manufacturing: filters, medical gowns and drapes,
diag-nostics & life science applications, wallcoverings, flooring and food packaging
C ATRIA Manufacturing: meat business, meat product business, poultry business, convenience food business
D KONECRANES Manufacturing & Services: cranes for shipbuilding, ports, automotive, waste to energy & steel equipment
E KEMIRA Manufacturing & Services: pulp & paper, oil & gas, mining and water treatment
F KONE Manufacturing & Services: elevators, escalator & automat-ic building doors
G COMPONENTA Manufacturing: design & engineering & casting solutions H FAZER Manufacturing & Services: Food Services, contract
cater-ing & food products
Table 10 shows the motives of these investments and host countries of the in-vestments and the equity sought at the time of market entry. The case studies are all multinationals and their market capitalization ranges between 79M€ (COM-PONENTA) to 20B€ (KONE) (Bloomberg 2015). Market capitalization for
Fazer was not available from Bloomberg. Out of twenty-eight cases or case ac-quisitions under study, fifteen were made in advanced economies why thirteen were made in emerging markets and developing countries.
Table 10. Cases Characteristics and Acquisition Strategies
Case Company Target Host Country Formal Institutions Equity Stake Acquisition Strategies Year of Entry Motives for Investment
A Russia EMDC 60 % Partial Acquisition 1988 Market-Seeking A South Africa EMDC 100 % Full Acquisition 2000 Efficiency-Seeking A Germany AE 100 % Full Acquisition 2011 Efficiency-Seeking B USA AE 45 % Partial Acquisition 2011 Strategic Asset-seeking B Sweden AE 100 % Full Acquisition 2012 Market-Seeking +
Effi-ciency + Strategic Asset-Seeking C Russia EMDC 49,50 % Partial Acquisition 2010 Resource-Seeking C Sweden AE 57.1 -100% Staged Acquisition 2007 Market-Seeking C Estonia AE 76%-100% Staged Acquisition 2004 Market-Seeking D South Africa EMDC 19%-100% Staged Acquisition 2007 Market-Seeking D Morocco EMDC 100 % Full Acquisition 2010 Market-Seeking E Russia EMDC 70 % Partial Acquisition 2006 Market-Seeking
E X AE Full Acquisition Strategic Asset-Seeking
E USA AE 15%-100% Staged Acquisition 2000 Market-Seeking E Netherlands AE 100 % Full Acquisition 2014 Market-Seeking F Egypt EMDC 49,50 % Partial Acquisition 1992 Market-Seeking F Saudi Arabia EMDC 40 % Partial Acquisition 2007 Market-Seeking F Bulgaria EMDC 60%-100% Staged Acquisition 2011 Market-Seeking F Kenya EMDC 100 % Full Acquisition 2013 Market-Seeking F Israel AE 100 % Full Acquisition 2013 Market-Seeking F US, Italy, etc. AE 100 % Full Acquisition Yearly Efficiency-Seeking G Turkey EMDC 55%-93,6% Staged Acquisition 2006 Market-Seeking G Sweden AE 100 % Full Acquisition 2012 Market-Seeking + Effi-ciency-Seeking H Norway AE -100% Staged Acquisition 2003 Market-seeking H Denmark AE 59%-100 Staged Acquisition 2001 Market-seeking H Norway AE 100% Full Acquisition 2013 Market-Seeking H Sweden AE 100 % Full Acquisition 2011 Efficiency-Seeking + Market-Seeking EMDC = Emerging Markets and Developing Countries
AE = Advanced Economies
From the table, twenty case acquisitions had market-seeking motives. Out of these twenty market-seeking motives, three had mixed motives i.e. in addition to
market-seeking motives they also had efficiency-seeking and strategic asset-seeking motives. There were six efficiency-asset-seeking motives. Two cases out of the six efficiency-seeking motives also had mixed motives i.e. included market-seeking motives and strategic asset-market-seeking motives. Two cases had strategic as-set-seeking motives. One case acquisition had resource-seeking motives.
Table 11 shows the measures of acquisition performance informed by the case managers with respect to the motives of these acquisitions. It also shows the actu-alization of the initial motives of the acquisition at the time of market entry. Fur-ther analysis and findings are discussed in the next section.
Table 11. Case Acquisitions, Motives and Achievement of Motives of Market Entry
Case No Formal Insti- tutions Strategies Motives Performance Key Perfor- mance Measures
1 EMDC PA MS Achieved targets Market Share + financial measures 2 EMDC FA ES Achieved targets Cost Synergies + financial measures 3 AE FA ES Achieved targets Cost Synergies + financial measures 4 AE PA SA Failed Acquisition New Product Qualification
5 AE FA ME+ES
+SA
Achieved targets Market Share+ financial measures (net sales)
6 EMDC PA RS Failed Acquisition Availability of raw materials and price of meat 7 AE SA MS Achieved targets Market Share+ profitability
8 AE SA MS Achieved targets Market Share+ profitability
9 EMDC SA MS Achieved targets Sales, profitability - merely on EBIT- and Return on Capital
10 EMDC FA MS Achieved targets Sales, profitability - merely on EBIT- and Return on Capital
11 EMDC SA MS Achieved targets Market Share+ financial measures
12 AE FA SA Achieved targets
13 AE SA MS Achieved targets Market Consolidation
14 AE FA MS Market Position + profitability improvement
through synergies
15 EMDC PA MS Achieved targets No of installed equipment in service + financial measures
16 EMDC PA MS Achieved targets No of installed equipment in service + financial measures
17 EMDC SA MS Achieved targets No of installed equipment in service + financial measures
18 EMDC FA MS Achieved targets No of installed equipment in service + financial measures
19 AE FA MS Achieved targets No of installed equipment in service + financial measures
20 AE FA MS Achieved targets Cost Synergies + no of equipment in Service 21 EMDC SA MS Achieved targets production capacity + financial number 22 AE FA MS+ES Achieved targets financial measure + cost synergies 23 AE SA MS+ES Achieved targets Customer retention+ financial measure 24 AE SA MS Achieved targets Customer retention + financial measure 25 AE FA MS+SA Achieved targets Customer retention + financial measure 26 AE FA MS+ES Achieved targets Customer retention+ skills & competences +
financial measure
FA= Full Acquisition. SA= Staged Acquisition, PA = Partial Acquisition, MS =Market-Seeking, ES =Efficiency-Seeking, SA =Strategic asset-seeking, RS=Resource-Seeking.