In this article, we explore the role of firm’s network ties in form of board interlocks on its propensity to pursue cross-border mergers and acquisitions. Anchoring on dual lens of network theory and resource dependence theory, our empirical analysis in the Indian context during 2003-2013, finds support for our hypothesis that board interlocks have a positive impact on the number of cross-border mergers and acquisitions done by the focal firm. Findings also show that strengthening of institutional reforms has a substitutive effect on firm’s network ties. Additionally, we also distinguish the contextual effect of network ties on cross-border mergers and acquisitions. Our empirical findings suggest that the relationship between degree of board interlocks and cross-border acquisitions is moderated by the industry context.
|Journal||Academy of Management Proceedings|
|Publisher||Academy of Management|