Enhancing cross-border M&A performance through diaspora networks




William Y. Degbey, Kimberly M. Ellis

European International Business Academy Conference

Politecnico di Milano

2017

International business in the information age

43rd European International Business Academy Conference

http://www.eiba2017.polimi.it/

https://research.utu.fi/converis/portal/detail/Publication/28589646



This paper explores conceptually how diaspora networks influence cross-border M&As in Africa. The paper seeks to build on the network perspective 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, three 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.


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