Diaspora Networks in International Business: Perspectives for Understanding and Managing Diaspora Business and Resources

This chapter conceptually explores how diaspora networks influencecross-border M&As in Africa. It seeks to build on both network and resourcebasedperspectives, and makes contribution by developing a conceptual model andtestable propositions that draw explicitly on the concept of diaspora networks toinform both scholarly and practitioner research on African cross-border M&Aperformance. The model shows how diasporic ties of the acquiring firm seniorleaders may influence outcomes associated with African cross-border M&As. Additionally,three main variables—diaspora’s time spent outside Africa, tribal ties withgovernment officials and target firm owners/managers and shared colonial heritage—are proposed to moderate the effects of diaspora networks on post-M&Aperformance. Finally, implications for practice and further studies are also discussed.