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Springboarding and activity load: Constraints on managerial attention and dependency on advisory firms in cross-border acquisitions

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  • Popli, Manish
  • Ahsan, Faisal Mohammad

Abstract

In this study, we aim to better understand the springboard perspective by examining how emerging market firms manage the process of ‘recursive’ cross-border acquisitions. Based on the attention-based view of the firm and resource dependence theory, we propose that ‘recursive’ CBAs augment activity load, limiting decision-makers' information processing capacity. As a result, acquiring firms depend on external resources in the form of more professional advisors. This relationship strengthens when the target firm has a greater degree of product diversity but weakens when the acquiring firm has context-specific experience. From 2000 to 2022, we used a multi-country sample of 2621 CBAs from Brazil, Russia, India, China, and South Africa and found support for our hypotheses.

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  • Popli, Manish & Ahsan, Faisal Mohammad, 2024. "Springboarding and activity load: Constraints on managerial attention and dependency on advisory firms in cross-border acquisitions," Journal of International Management, Elsevier, vol. 30(2).
    • Handle: RePEc:eee:intman:v:30:y:2024:i:2:s1075425324000024
    DOI: 10.1016/j.intman.2024.101121
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