Logistics capabilities as drivers of cross-border acquisitions: empirical insights from advanced and emerging economies

This research examines logistics capabilities (LC) in cross-border acquisitions (CBA) through Dunning's Locational Advantage theory and the CAGE framework. This study analyzes data from 1990 to 2022, with 327,020 observations from 137 home and 77 host countries, to assess how LC differences impact CBA volumes. The results reveal that LC distance reduces CBA flows due to higher costs and challenges. Advanced economies leverage superior logistics to boost CBA volumes, while emerging economies' focus on market access and resources negatively affects CBA volumes. Economic distance can mitigate logistical challenges and enhance investment attractiveness. The research underscores LC's importance in international business, advocating for targeted policies to enhance logistics in emerging markets to attract FDI and integrate into global supply chains. It also offers valuable theoretical insights and guidance for future research in the field of logistics.