Kimberly M. Ellis

Integration in large, related M&As: linkages between contextual factors, integration approaches and process dimensions

The purpose of our study is to examine differences in contextual factors and process dimensions across three integration approaches used in large, related M&As – absorption, symbiotic and transformation. Absorption and symbiosis are commonly documented in M&A process literature and transformation, while emphasised less in existing M&A studies, appears to be widely utilised in large, related M&As. Using a unique co-plotting technique, we find that the existence of several contextual factors which influence the potential for resource combinations and use of multiple process dimensions which facilitate actual resource combinations during the implementation stage differ significantly depending upon the integration approach used by the combined firm. Moreover, our study adds to growing literature on the M&A process by providing systematic evidence of the important linkages between integration approaches, pre-existing contextual factors and process activities.

Mergers and Acquisitions in Africa: A Review and an Emerging Research Agenda

This article identifies and reviews existing merger and acquisition (M&A) studies focused on African markets. In this review, the factors mentioned directly or alluded to in the existing studies that distinguish African countries as target nations from other countries traditionally considered in the M&A literature are highlighted. Also reported are the results from a series of in-depth interviews with executives intimately involved with M&As in Africa. These interviews highlight some of the idiosyncratic features of the African context that bring to the forefront boundary conditions of, and the need to expand, existing M&A research based on acquisitions in the more developed regions of North America and Western Europe. The paper concludes with a synthesis of the conclusions from the authors’ review of the literature with the insights offered from their executive interviews to chart a roadmap for future research designed to enhance our understanding of M&As in general. The African context appears particularly appropriate for extending our knowledge of institutional theory, the development of selection capabilities, learning and knowledge transfer theories, the role of cultural differences in cross-border M&A, organizational justice theory, a subset of institutional theory on institutional legacies, and social dominance theory.

Performance effects of top management team gender diversity during the merger and acquisition process

Purpose – The purpose of this paper is to uncover the performance effects of top management team (TMT) gender diversity in the merger and acquisition (M&A) process. To do so, an integration of the upper echelons perspective and the M&A process literature is offered to consider the “double-edge sword” of gender diversity on both pre- and post-integration performance. Additionally, the boundary effects of acquirer experience on the TMT gender diversity-performance relationship is examined. Design/methodology/approach – The hypotheses are tested in a sample of 310 acquisitions by Fortune 1,000 companies. Multiple regression analysis is utilized to test the effects on the two different performance variables. Findings – The findings reveal that TMT gender diversity is beneficial to pre-integration performance, but hinders post-integration performance. Additionally, the findings provide evidence that acquirer experience can overcome the negative effects of gender diversity in post-integration performance. Origi...

M&A Negotiation Stage: A Review and Future Research Directions

Abstract Despite the number of articles over the past two decades mentioning the importance of the negotiation stage in the M&A process, there has been very limited theoretical development and empirical analysis emphasizing multiple factors critical to M&A negotiations. The purpose of our paper is twofold. First, we provide a review of the extant academic literature on negotiations in the M&A process. Then, drawing on the M&A process perspective and classical negotiation theory, we develop a framework to highlight major components of the M&A negotiation stage examined in existing studies and offer key insights of how this underdeveloped area of study is ripe with opportunities for future theoretical development and empirical research.

Developing and Utilizing Efficient Ties in Entrepreneurial Networks in Africa

How do an entrepreneurs capabilities affect social network development? What characteristics of the African context make network dynamics different than in more Westernized and developed markets? A theoretical model that links social effectiveness to effective relationship building and network development leading to greater levels of social capital is presented in an effort to address these and related questions. Social effectiveness provides a competitive advantage in social network development in three primary ways. First, socially effective entrepreneurs are able to identify potential contacts that will fulfill needs in their current social network. Second, they are able to develop effective relationships with a greater range of potential contacts, and third they are able to develop effective relationships with less effort. We describe effective relationships developed through limited social interaction as efficient ties. More importantly, we highlight how the development of efficient ties is different in African countries than in more Western nations. Specifically, (1) ubuntuism in certain collectivist countries and (2) tribal solidarity make efficient ties easier to develop and (3) corruption and distrust in economic exchange, (4) liabilities of kinship ties, and (5) tribal, religious, and linguistic diversity make the development of efficient ties more difficult compared to Westernized contexts.

Event Study Methodology: An Overview and Special Considerations for African Markets

Abstract Purpose To explain for doctoral students and new faculty, the appropriate techniques for using event study methods while identifying problems that make the method difficult for use in the context of African markets. Methodology/approach We review the finance and strategy literature on event studies, provide an illustrative example of the technique, summarize the prior use of the method in research using African samples, and indicate remedies for problems encountered when using the technique in African markets. Findings We find limited use of the technique in African markets due to limited data availability which is attributable to problems of infrequent trading, thin markets, and inadequate access to free data. Research limitations Our review of the literature on event studies using African data is limited to English-language journals and sources accessible through our library research databases. Practical implications More often, researchers will need to use nonparametric techniques to evaluate market responses for companies in or events affecting the African markets. Originality/value of the chapter We make a contribution with this chapter by giving a more detailed description of event study methods and by identifying solutions to problems in using the technique in African markets.

Africa: An Emerging Context for Value Creation with Cross-Border Mergers and Acquisitions

Merger and acquisition (MA King et al. 2004; Seth 1990b) and their great practical importance in strategic, monetary, and social terms (Aklamanu et al. 2015; Gomes et al. 2013), particularly in developed countries over the last half-century. Yet, there is limited understanding of the overall relevance and sources of value creation associated with MA Triki and Chun 2011). Figure 7.1 presents an overview of the trends in African M&A in terms of the number and value of deals from 2009 to 2013.

Diaspora Networks in Cross-Border Mergers and Acquisitions

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.