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Post-acquisition integration behavior of nascent African multinational enterprises

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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… Click to show full 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: integration; nascent african; acquisition integration; post acquisition; approach

Journal Title: Journal of Business Research
Year Published: 2018

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