A series of changes in India's financial institutional regime led to waves of cross-border mergers and acquisitions (M&amp;A) deals spanning various industries. In this article, we explore firm-level determinants that distinguish between early movers and followers in these waves. We tested our hypotheses using data for the 2001–2011 period. Analysis found support for our hypotheses that prior experience (with alliances), firm size, and international embeddedness of business group influence timing of firms' cross-border M&amp;A. Findings support the springboarding perspective that emerging market (EM) firms engage in preemptive acquisitions to gain first-mover advantage.

Manish Popli

Strategic Management

Ashutosh Kumar Sinha

IIM Indore seeks to be a contextually-relevant business school with world-class academic standards that develops socially-conscious managers, leaders and entrepreneurs. IIM Indore is committed to: Excellence in management education, research, and training, Use of contemporary participant-centric pedagogies and teaching methods, A presence in emerging segments of management education.

IIM Indore

Asia Pacific Journal of Management

Literature has advanced two contrasting theoretical perspectives related to the governance structure of business groups: the ‘value-constraining' perspective, which focuses on principal–principal agency conflict and organizational inertia theory, and the ‘value-enabling' perspective, which emphasizes the role of business groups in mitigation of institutional voids. Building on these two competing lenses, we develop hypotheses to examine post-acquisition performance of affiliate firms relative to stand-alone firms. As our empirical context, we study 440 majority-stake, domestic and cross-border merger and acquisition deals closed by Indian firms during the period 2002–2013. The results imply that in emerging markets, despite concerns of organizational inertia and principal–principal agency issues, the value-enabling impact of group affiliation persists. We also examine the contextual impact of intergroup heterogeneity owing to group diversification on post-acquisition performance and find that greater group diversification leads to better performance for affiliate acquirers.已有文献针对商业群体的治理结构提出了两个相反的理论观点。“价值约束”观点聚焦委托代理冲突和组织惰性理论，“价值赋能”观点则强调商业群体在减少制度空白中的作用。基于两种对立的视角，我们建立了假设检验附属公司相对于独立公司完成并购后的业绩。我们研究了印度公司在2002-2013年间完成的440个国内和跨国的大股东并购案例，结果表明在新兴市场中，尽管存在组织惰性和委托代理方面的顾虑，群体隶属的价值赋能影响依然存在。我们还考察了因群体多样化而产生的群体间的异质性对于并购后业绩所产生的情境影响，发现更大的群体多样化导致附属的并购企业产生更好的业绩。В научной литературе существуют две противоположные теоретические перспективы, которые связаны со структурой управления в деловых кругах: перспектива «ограничения ценности», которая основана на конфликте «принципал-принципал» и теории организационной инерции, и перспектива «создания ценности», которая подчеркивает роль деловых кругов в ослаблении влияния институционального вакуума. Опираясь на эти две противоположные точки зрения, мы разрабатываем гипотезы для изучения производительности дочерних компаний после приобретения по сравнению с самостоятельными компаниями. В качестве нашего эмпирического контекста, мы изучаем 440 внутренних и международных сделок по слиянию и поглощению с мажоритарным участием, которые заключили индийские компании в период 2002–2013 годов. Результаты показывают, что на развивающихся рынках, несмотря на организационную инерцию и проблему «принципал-принципал», принадлежность деловых кругов способствует созданию ценности. Мы также изучаем контекстуальное влияние межгрупповой неоднородности, основанной на групповой диверсификации, на производительность после приобретения и обнаруживаем, что большая групповая диверсификация ведет к повышению производительности для аффилированных приобретателей.La literatura ha avanzado dos perspectivas te'oricas contrastantes relacionadas con la estructura de gobierno de los grupos empresariales: la perspectiva de “limitador de valor” la cual se enfoca en la teor'ia de inercia organizacional y del conflicto de la agencia principal y la principal, y la perspectiva de “habilitador de valor”, la cual enfatiza el rol de los grupos empresariales en la mitigaci'on de los vac'ios institucionales. Sobre la base de estos dos lentes que compiten, desarrollamos hip'otesis para examinar el desempe~no posterior a la adquisici'on de las empresas afiliadas en relaci'on con las empresas independientes. En nuestro contexto emp'irico, estudiamos 440 acuerdos de fusiones y adquisiciones mayoritarios cerrados por empresas indias durante el periodo 2002-2013. Los resultados implican que, en los mercados emergentes, a pesar de las preocupaciones de la inercia organizacional y los asuntos de agencia principal a principal, el impacto habilitador de valor de la afiliaci'on del grupo persiste. Tambi'en examinamos el impacto del contexto de la heterogeneidad intergrupal debido a la diversificaci'on grupal en el desempe~no posterior a la adquisici'on y encontramos que una mayor diversificaci'on grupal lleva a un mejor desempe~no para los adquirientes afiliados.

Management and Organization Review

Value Constraining or Value Enabling? The Impact of Business Group Affiliation on Post-Acquisition Performance by Emerging Market Firms

According to the springboard perspective, emerging market multinationals seek strategic assets aggressively from the outset. In this paper, we investigate the role of firms’ institutional embeddedness in terms of age and affiliation to business group on their aggressive internationalization pursuits, an issue which has remained less explored in international business scholarship. This study, based on 8163 Indian listed firms over 18 years, identifies a trend that younger firms founded in the liberalized era, post 1991, and unaffiliated firms are more likely to pursue aggressive internationalization by conducting their first cross-border acquisition (CBA) faster. Among affiliated firms, younger ones are relatively faster in conducting their first CBA. Furthermore, the evidence signals a moderating impact of inter-group heterogeneity in terms of group-level assets and foreign investments on the relationship between firm age and aggressive internationalization.

Journal of International Business Studies

Springboard internationalization by emerging market firms: Speed of first cross-border acquisition

In an emerging market context, the strength of sociodemographic faultlines of the top management team (TMT) might negatively impact the speed of firm's foreign direct investment (FDI) expansion. Building on upper echelon perspectives, the study proposes testable propositions on the role of sociodemographic faultlines (based on age, caste, and language) of the TMT on the speed of firm's FDI expansion. The role of decision‐making in TMT is crucial for embarking upon such strategic actions and analyzing those that are pertinent for the international business scholarship. Furthermore, we propose that the degree of inward foreign competition faced by the firms and the prior international experience of the TMT will moderate this relationship.

Strategic Change

Impact of top management team sociodemographic faultlines on speed of foreign direct investment expansion: An emerging market perspective

Risk can be assessed and managed by acquirers from emerging markets in their international acquisitions by evoking the role of commitment as outlined in the original Uppsala model. It is proposed that commitment may be maneuvered depending on the motive, industry context, and the prior experience of the acquirer from incountry joint‐ventures for incumbent firms.

Reusing Uppsala lens in cross-border M&amp;As of emerging markets

Prior research on post-acquisition performance suggests positive, negative, or no wealth creation for the acquiring firms. Grounding our arguments on the extended resource-based view, the current article proposes that business group–affiliated firms leverage their affiliation advantages to attain superior long-term acquisition performance, relative to standalone firms, especially in emerging economies such as India. Additionally, we hypothesize that both within-group heterogeneity, manifested as prior group experience, group diversification, and intra-group variation in the form of horizontal ties through boards of directors, also affect the long-term post-acquisition performance of affiliated firms. The findings, obtained with a buy-and-hold abnormal returns method applied to a sample of 468 majority stake mergers and acquisitions, both domestic and cross-border, by Indian firms during 2005–2013, provide robust support for the theoretical arguments.

Journal of Business Research

Business group affiliation and post-acquisition performance: An extended resource-based view

Emerging economy firms companies are using higher entry modes in their pursuits of internationalization. This indeed has received immense attention by scholars across the globe; however not much is known about their timing aspects in this inorganic mode of international expansion. To that end, we seek to investigate firm level determinants which differentiate early movers from followers in the ‘spring-board' approach. Integrating temporal perspectives of strategy with the motives of emerging market cross-border acquisitions, we center our research on cross-border mergers &amp; acquisition waves. We tested our hypotheses using data of Indian context in a span of eleven years (2001-2011) and our empirical results suggest that firms possessing prior international experience, market power and affiliation with business group are more likely to be first movers in a cross border M&amp;A wave

Journal	Data powered by TypesetAsia Pacific Journal of Management
Publisher	Data powered by TypesetSpringer Science and Business Media LLC
ISSN	0217-4561
Open Access	No