This paper has two closely related purposes. A first purpose is to increase ouunderstanding of foreign acquisitions by considering them within the conteof the internationalization process of the firm. Second, by focusing on the rof acquisitions the paper is meant to contribute to a development of the moof the internationalization process of the firm. By focusing the embedded nture of the business firm it places attention on the role of organic acquisitias contrasted to the discontinuous changes associated with foreign acquisitions.
A conceptual result is that the paper offers a framework for analyzing the rof foreign acquisitions in the internationalization process of the business firThis framework takes into consideration both antecedents to and consequencof acquisitions.
An empirical result is the finding that there seems to be a strong tendency amonacquired firms to remain unaffected by the revised legal boundaries long afthe acquisition. Thus, the result of acquisitions seems primarily to be strengtening old rather than establishing new market network positions.