Post-acquisition integration behavior of nascent African multinational enterprises

Ibeh, Kevin and Makhmadshoev, Dilshod (2018) Post-acquisition integration behavior of nascent African multinational enterprises. Journal of Business Research. ISSN 0148-2963 (https://doi.org/10.1016/j.jbusres.2018.03.032)

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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.

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