Diaspora Networks in Cross-Border Mergers and Acquisitions

Abstract

This chapter conceptually explores how diaspora networks influence cross-border M&As in Africa. It seeks to build on both network and resource-based perspectives, and makes contribution by developing a conceptual model and testable propositions that draw explicitly on the concept of diaspora networks to inform both scholarly and practitioner research on African cross-border M&A performance. The model shows how diasporic ties of the acquiring firm senior leaders may influence outcomes associated with African cross-border M&As. Additionally, three main 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. Finally, implications for practice and further studies are also discussed.