Diaspora Networks in Cross-Border Mergers and Acquisitions

Abstract

<p>This chapter conceptually explores how diaspora networks influence<br />cross-border M&As in Africa. It seeks to build on both network and resourcebased<br />perspectives, and makes contribution by developing a conceptual model and<br />testable propositions that draw explicitly on the concept of diaspora networks to<br />inform both scholarly and practitioner research on African cross-border M&A<br />performance. The model shows how diasporic ties of the acquiring firm senior<br />leaders may influence outcomes associated with African cross-border M&As. Additionally,<br />three main variables—diaspora’s time spent outside Africa, tribal ties with<br />government officials and target firm owners/managers and shared colonial heritage—<br />are proposed to moderate the effects of diaspora networks on post-M&A<br />performance. Finally, implications for practice and further studies are also discussed.<br /></p>