Post-acquisition integration behavior of nascent African multinational enterprises

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    Abstract

    This paper explores nascent African MNEs’ approach to integrating intra-regional acquisitions, including the theoretical link between such decisions and the acquirer’s resource position. It contributes by offering rare evidence of these firms’ preference for control-availing absorption-type integration approach and of how their resource profile, acquisition motives and target’s institutional environment affect this preference. The paper counsels newer MNEs to focus on developing mission-critical capabilities ahead of international acquisitions. Amidst concerns about the value-creating credentials of EMNEs’ up-market acquisitions, including their typical hands-off partnering approach, and the uncertain global economic order, our paper proffers absorption-type integration approach and Rugmanian intra-regional acquisitions, respectively, as a credible alternative and probable safer harbour for newer MNEs. A propositional checklist is additionally presented for future research.
    Original languageEnglish
    JournalJournal of Business Research
    Early online date7 Apr 2018
    DOIs
    Publication statusE-pub ahead of print - 7 Apr 2018

    Fingerprint

    Africa
    Multinational enterprises
    Resources
    Partnering
    International acquisitions
    Check list
    Institutional environment
    Economics

    Keywords

    • post-acquisition integration
    • resource position
    • African MNEs
    • EMNEs
    • intra-regional
    • up-market

    Cite this

    @article{6111e869b1fc4e23b13d78fdf2d799fa,
    title = "Post-acquisition integration behavior of nascent African multinational enterprises",
    abstract = "This paper explores nascent African MNEs’ approach to integrating intra-regional acquisitions, including the theoretical link between such decisions and the acquirer’s resource position. It contributes by offering rare evidence of these firms’ preference for control-availing absorption-type integration approach and of how their resource profile, acquisition motives and target’s institutional environment affect this preference. The paper counsels newer MNEs to focus on developing mission-critical capabilities ahead of international acquisitions. Amidst concerns about the value-creating credentials of EMNEs’ up-market acquisitions, including their typical hands-off partnering approach, and the uncertain global economic order, our paper proffers absorption-type integration approach and Rugmanian intra-regional acquisitions, respectively, as a credible alternative and probable safer harbour for newer MNEs. A propositional checklist is additionally presented for future research.",
    keywords = "post-acquisition integration, resource position, African MNEs, EMNEs, intra-regional, up-market",
    author = "Kevin Ibeh and Dilshod Makhmadshoev",
    year = "2018",
    month = "4",
    day = "7",
    doi = "10.1016/j.jbusres.2018.03.032",
    language = "English",
    journal = "Journal of Business Research",
    issn = "0148-2963",

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    AU - Makhmadshoev, Dilshod

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    AB - This paper explores nascent African MNEs’ approach to integrating intra-regional acquisitions, including the theoretical link between such decisions and the acquirer’s resource position. It contributes by offering rare evidence of these firms’ preference for control-availing absorption-type integration approach and of how their resource profile, acquisition motives and target’s institutional environment affect this preference. The paper counsels newer MNEs to focus on developing mission-critical capabilities ahead of international acquisitions. Amidst concerns about the value-creating credentials of EMNEs’ up-market acquisitions, including their typical hands-off partnering approach, and the uncertain global economic order, our paper proffers absorption-type integration approach and Rugmanian intra-regional acquisitions, respectively, as a credible alternative and probable safer harbour for newer MNEs. A propositional checklist is additionally presented for future research.

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    KW - resource position

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    KW - up-market

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