This thesis seeks to investigate the determinants of cross-border mergers and acquisitions (CBAs) within the technology, media and telecommunications (TMT) sector on a global level.
The aim is to build on the resource-based view (RBV) and adjusted gravity theory of trade — the study analyzes how country- and industry-specific factors influence the likelihood, and volume of cross-border M&A.
Cross-border M&A activity in the TMT sector has surged over the past two decades, driven by rapid technological change, digital convergence, and the strategic need for firms to access new markets and capabilities. Yet, the determinants of these transactions remain underexplored in empirical literature, particularly at the intersection of country-level economic factors and industry-specific dynamics.
This study employs a gravity model framework, augmented with variables capturing technological readiness, regulatory environment, and cultural distance, to analyze a comprehensive dataset of over 12,000 cross-border M&A transactions in the TMT sector spanning from 1997 to 2023.
Key findings suggest that GDP similarity, shared language, and technological infrastructure are significant positive determinants of cross-border M&A flows, while geographic distance and regulatory barriers act as deterrents. The results also reveal that the importance of these factors has shifted over time, with digital connectivity increasingly substituting for geographic proximity in recent years.
The implications of this research extend to both policymakers seeking to attract foreign investment in their TMT sectors and corporate strategists evaluating cross-border acquisition targets. By understanding the structural determinants of these flows, stakeholders can better anticipate and respond to the evolving landscape of global M&A activity.
