International business in the information age

This paper explores conceptually how diaspora networks influence cross-border M&As in Africa. The paper seeks to build on the network perspective and contributes by developing a theoretical model and testable propositions that draw specifically on the concept of diaspora networks to inform the literature on African cross-border M&A performance. The model shows how non-local knowledge of the acquiring firm facilitated by diasporic ties of its senior leaders may influence outcomes associated with African M&As. In addition, three key 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. Implications for theory and practice are also discussed.