Cross-border M&As: integration practices from emerging economies

Abstract

Purpose The purpose of the study is to gain insights into the post-acquisition integration practices of Indian multinational companies involved in cross-border acquisitions. Design/methodology/approach The study is based on the primary data from a sample of Indian companies engaged in cross-border acquisitions. A survey (based on a structured questionnaire) method has been used to collect the relevant data. Findings Majority of the sample companies have successfully managed the post-acquisition phase and realized the anticipated synergies. These companies recognize the importance of cultural integration, people/HR integration and formal communication channel during the post-acquisition phase. Despite the integration strategy being profoundly influenced by cultural differences between two companies, the emphasis on these cultural differences especially during the due-diligence stage is lacking. These aspects have not been examined adequately during the due-diligence phase. Practical implications Based on the findings, a model of cross-border acquisition and integration process (AIP) in the context of emerging economies has been proposed; the model is expected to be applicable across all industries and organizations, especially in emerging economies. The proposed model should essentially help senior and middle managers to develop successful integration strategies. Moreover, the study holds immense potential for practitioners and academicians by providing them with a new thought on executing successful acquisitions. Originality/value To the best of the authors’ knowledge, no study has examined the post-acquisition integration approach in emerging economies. Moreover, rarely has any AIP model applicable across several organizations of all sizes and types from emerging economies been suggested in the literature. The suggested AIP model is the unique proposition of the paper.