Do foreign resources assist or impede internationalisation? Evidence from internationalisation of Indian multinational enterprises

• We extend the boundary conditions of the resource-based view in the context of cross-border acquisitions undertaken by emerging country multinational enterprises.
• We show that it is not just the amount of resources but also the nature of resources that affect the emerging country multinational enterprise's decision to undertake cross-border acquisitions.
• Our findings show that external resources can impede, as well as assist, cross-border acquisitions undertaken by emerging country multinational enterprises.

Cross-border acquisitions (CBAs) by emerging country multinational enterprises (EMNEs) have attracted considerable scholarly attention in recent years. However, researchers have not yet thoroughly investigated the effects of combining external resources accessed from abroad with resources owned and possessed by the EMNE when undertaking acquisitions. Against the general supposition in the Resource Based View (RBV) that all resources facilitate acquisitions, the paper shows that external foreign resources can impede, as well as assist, cross-border acquisitions. Their effect depends on the nature of interactions between external and internally owned resources within the EMNE. This study offers managerial implications for EMNEs planning to use external resources to accelerate their internationalisation.