Acquisitions Entry Strategies in Africa: The Role of Institutions, Target-Specific Experience, and Host-Country Capabilities-The Case Acquisitions of Finnish Multinationals in Africa

Abstract

Acquisition is an important entry strategy for multinational enterprises ( MNEs )

International joint ventures research on Africa: A systematic literature review, propositions, and contextualization

“…This in turn positively influences partner-related selection criteria in IJVs. In the African context, where corruption is prevalent, we expect a high cost for doing business (Kimuyu, 2007) M&As (e.g., Oguji & Owusu, 2017a) and local content legislation (e.g., Vaaland et al, 2012). Similar studies are needed to enhance our understanding of the recruitment and staffing policies that may enjoin foreign IJV partners to hire more than 50% of the top managers from the host country and the implications of such policies.…”

“…Partner selection becomes a critical issue for the partners to get it right and stay together "'til death do them part." In some studies, institutional cultural distance is classified under informal institutions (Contractor et al, 2014;Peng, Wang, & Jiang, 2008), and there is limited research on this topic within the context of Africa (Hearn, 2015;Kimuyu, 2007;Luiz & Charalambous, 2009;Oguji & Owusu, 2017a).…”

“…They relate to failures in formal institutions (see Oguji & Owusu, 2017a). Regulatory restrictions, country risks, and cultural distance are constructs related to formal and informal institutional distance (see Arslan & Larimo, 2011;Contractor, Lahiri, Elango, & Kundu, 2014;Oguji & Owusu, 2017a). The reviewed research suggests institutions are a predominant factor affecting entry…”

“…China (Contractor et al, 2014 Morocco, and South Africa in 2013, 2010 suggested that the state of institutions in Africa led to the preference for staged and full acquisitions (Oguji & Owusu, 2017a In the context of Africa, the performance of IJVs is seen as an integration of strategy path dependency and a firm's resources and capabilities (Acquaah, 2009;Foster-McGregor et al, 2015). Some authors argued that the determinants of IJV performance in the mainstream literature, such as partner capabilities and the congruity of motives and goals, apply to the context of Africa (Boateng & Glaister, 2002;Famakin et al, 2012).…”

Macro‐institutional conditions in Ghana and the challenges to HRM program development and implementation

“…MNEs’ HRM research in the “African context” has been underrepresented and less noticeable in the advancement of management theories within the IB and international HRM domain (Oguji & Owusu, ). As Kolk and Rivera‐Santos (, p.3) put it, “our limited understanding of the extent to which African contexts can contribute to the broader literature also has important implications for the extent to which the broader literature can help understand the specificities of business in Africa”.…”