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The effect of MNEs’ technology startup acquisitions on small open economies’ entrepreneurial ecosystems

Abstract

The strength and innovativeness of small open economies (SOECs) have long attracted multinational enterprises’ (MNEs’) entry. However, in their quest for new knowledge and technological capabilities, MNEs have been active in acquiring the technology-based startups in these countries. While some of these acquisitions are beneficial to the development and growth of SOECs’ entrepreneurial ecosystems, others can have serious long-term negative effects that have not been sufficiently recognized in the literature. We discuss the policy implications of MNEs’ acquisitions of technology-based startups, especially for SOECs’ entrepreneurial ecosystems.

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ACKNOWLEDGEMENTS

We are grateful for the supportive comments of our editor Sarianna Lundan and the anonymous reviewers. We acknowledge with appreciation the support of Global Business Institute at Carlson School of Management. We have benefited from our discussions with Paul Vaaler, Mia Erez, Shelly Lev-Koren and Patricia H. Zahra.

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Accepted by Sarianna Lundan, Editor-in-Chief, 28 October 2021. This article has been with the authors for one revision.

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Zahra, S.A., Hashai, N. The effect of MNEs’ technology startup acquisitions on small open economies’ entrepreneurial ecosystems. J Int Bus Policy 5, 277–295 (2022). https://doi.org/10.1057/s42214-021-00128-3

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Keywords

  • international entrepreneurship
  • MNEs
  • small open economies, acquisitions
  • startups
  • entrepreneurial ecosystem
  • policy