Diaspora networks in cross-border mergers and acquisitions
: William Y. Degbey, Kimberly M. Ellis
: Vaasa Conference on International Business and International Doctoral Tutorial
: University of Vaasa
: 2017
: 14th Vaasa Conference on International Business
: http://www.uva.fi/en/sites/ibconference/conference_programme/scheduling_website_august24.pdf
This paper explores conceptually how diaspora networks influence cross-border M&As in Africa. The paper seeks to build on the network and resource-based perspectives and contributes by developing a theoretical model and testable propositions that draw specifically on the concept of diaspora networks to inform the literature on African cross-border M&A performance. The model shows how non-local knowledge of the acquiring firm facilitated by diasporic ties of its senior leaders may influence outcomes associated with African M&As. In addition, 3 key variables – diaspora’s time spent outside Africa, tribal ties with government officials and target firm owners/managers and shared colonial heritage – are proposed to moderate the effects of diaspora networks on post-M&A performance. Implications for theory and practice are also discussed.