Research Repository

Out of Africa: The role of institutional distance and host-home colonial tie in South African Firms’ post-acquisition performance in developed economies

Liou, RS and Rao-Nicholson, R (2017) 'Out of Africa: The role of institutional distance and host-home colonial tie in South African Firms’ post-acquisition performance in developed economies.' International Business Review, 26 (6). 1184 - 1195. ISSN 0969-5931

[img]
Preview
Text
81F3FA2F7BEF.pdf - Accepted Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (926kB) | Preview

Abstract

The colonial ties and institutional distance affect the cross-border acquisition performance of internationalizing South African firms who acquire targets in developed economies. Along with these main effects, this paper examines the moderating effect of the colonial tie on the effects of institutional distance on post-acquisition long-term operating performance. Using data on South African acquisitions in developed economies, this study finds that the colonial tie has a negative impact on the long-term operating performance of South African acquirers. Yet, the colonial tie also moderates the effects of institutional distance. This work contributes to the discussion on host-home country institutional distance and its impact on post-acquisition long-term operating performance and how colonial past can influence the performance of acquirers from South Africa and other such countries with colonial history.

Item Type: Article
Uncontrolled Keywords: Emerging-market multinational firms, South Africa, Institutional distance, Colonial tie, Cross-border post-acquisition long-term operating performance
Divisions: Faculty of Social Sciences > Essex Business School
Depositing User: Elements
Date Deposited: 28 Nov 2019 11:02
Last Modified: 28 Nov 2019 11:02
URI: http://repository.essex.ac.uk/id/eprint/26058

Actions (login required)

View Item View Item