The causes and consequences of delayed/abandoned cross-border merger & acquisition transactions

2016 ◽  
Vol 29 (6) ◽  
pp. 917-962 ◽  
Author(s):  
K.S. Reddy ◽  
En Xie ◽  
Yuanyuan Huang
Keyword(s):  
Oil And Gas ◽  
Case Analysis ◽  
Telecommunications Industry ◽  
Government Control ◽  
Target Firm ◽  
Content Type ◽  
Poor Countries ◽  
Oil And Gas Exploration ◽  
Cross Border ◽  
Cross Case Analysis

Purpose Drawing attention to the significant number of unsuccessful (abandoned) cross-border merger and acquisition (M&A) transactions in recent years, the purpose of this paper is to analyze three litigated cross-border inbound acquisitions that associated with an emerging economy – India, such as Vodafone-Hutchison and Bharti Airtel-MTN deals in the telecommunications industry, and Vedanta-Cairn India deal in the oil and gas exploration industry. The study intends to explore how do institutional and political environments in the host country affect the completion likelihood of cross-border acquisition negotiations. Design/methodology/approach Nested within the interdisciplinary framework, the study adopts a legitimate method in qualitative research, that is, case study method, and performs a unit of analysis and cross-case analysis of sample cases. Findings The critical analysis suggests that government officials’ erratic nature and ruling political party intervention have detrimental effects on the success of Indian-hosted cross-border deals with higher bid value, listed target firm, cash payment, and stronger government control in the target industry. The findings emerge from the cross-case analysis of sample cases contribute to the Lucas paradox – why does not capital flow from rich to poor countries and interdisciplinary M&A literature on the completion likelihood of international takeovers. Practical implications The findings have several implications for multinational managers who typically involve in cross-border negotiations. The causes and consequences of sample cases would help develop economy firms who intend to invest in emerging economies. The study also offers some implications of M&A for telecommunications and extractive industries. Originality/value Although a huge amount of extant research investigates why M&A fail to create value to the shareholders during the public announcement and post-merger stages, there is a significant dearth of research on the causes and consequences of delayed or abandoned national and international deals. The paper fills this knowledge gap by discussing an in-depth cross-case analysis of Indian-hosted cross-border acquisitions.

scholarly journals Incremental and radical open service innovation

2018 ◽  
Vol 32 (2) ◽  
pp. 101-112 ◽  
Author(s):  
Per Myhren ◽  
Lars Witell ◽  
Anders Gustafsson ◽  
Heiko Gebauer
Keyword(s):  
Service Innovation ◽  
Group Development ◽  
Case Analysis ◽  
Team Development ◽  
Service Development ◽  
New Service Development ◽  
Content Type ◽  
Open Service ◽  
Cross Case Analysis

Purpose Open service innovation is an emergent new service development practice, where knowledge on how to organize development work is scarce. The purpose of the present research is to identify and describe relevant archetypes of open service innovation. The study views an archetype as an organizing template that includes the competence of participants, organizing co-creation among participants and ties between participants. In particular, the study’s interest lies in how open service innovation archetypes are used for incremental and radical service innovation. Design/methodology/approach For the research, a nested case study was performed, in which an industrial firm with nine open service innovation groups was identified. Forty-five interviews were conducted with participants. For each case, first a within-case analysis was performed, and how to perform open service innovation in practice was described. Then, a cross-case analysis identifying similarities and differences between the open service innovation groups was performed. On the basis of the cross-case analysis, three archetypes for open service innovation were identified. Findings The nested case study identified three archetypes for open service innovation: internal group development, satellite team development and rocket team development. This study shows that different archetypes are used for incremental and radical service innovation and that a firm can have multiple open service innovation groups using different archetypes. Practical implications This study provides suggestions on how firms can organize for open service innovation. The identified archetypes can guide managers to set up, develop or be part of open service innovation groups. Originality/value This paper uses open service innovation as a mid-range theory to extend existing research on new service development in networks or service ecosystems. In particular, it shows how open service innovation can be organized to develop both incremental and radical service innovations.

A framework for knowledge retention to support business continuity in the cross-border mergers of the telecommunications industry in Lesotho

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tahleho Tseole ◽  
Ngoako Solomon Marutha
Keyword(s):  
Policy Development ◽  
Telecommunications Industry ◽  
Knowledge Retention ◽  
Business Continuity ◽  
Content Type ◽  
Staff Members ◽  
Cross Border ◽  
The Cross ◽  
Amount Of Knowledge ◽  
Sphere Of Influence

Purpose The purpose of this study is to investigate a framework for knowledge retention to support business continuity in cross-border mergers of the telecommunications industry in Lesotho. Design/methodology/approach This study applied a qualitative case study, with data collected through interviews from a purposively selected sample of staff members who held managerial positions. Information in this study was partially extracted from the PhD thesis of Dr Tseole ET supervised by Prof Ngulube P at the University of South Africa completed in 2021. Findings The study discovered that a considerable amount of knowledge may have been lost because employees who either left the organisation or those who were apparently forced to resign during the process had left without any proper knowledge retention arrangements. Research limitations/implications The framework proposed in this study may be used in framing future studies as a theoretical framework. The study also provides new literature for review and discussion of background in future related studies. Practical implications The framework provided in the study may be used as a benchmark in the knowledge management industry and/or organisations for policy development or improvements and implementation of knowledge retention strategies. Social implications Through recommendations and framework provided by this study, organisations will be able to improve their services to their sphere of influence in the surrounding communities. So, community will be receiving an improved and good service at all the times. Originality/value A framework for facilitating knowledge retention in the cross-border mergers of the telecommunications industry is therefore proposed and the researchers believe it will be helpful to the organisation for improving knowledge retention going forward, particularly in the merger process.

Added cultural distance and ownership in cross-border acquisitions

2020 ◽  
Vol 27 (3) ◽  
pp. 487-510 ◽  
Author(s):  
Hyun Gon Kim ◽  
Ajai S. Gaur ◽  
Debmalya Mukherjee
Keyword(s):  
Cultural Distance ◽  
Geographic Distance ◽  
Target Firm ◽  
Content Type ◽  
Cross Border ◽  
Focal Firm ◽  
Final Sample ◽  
The Relationship ◽  
Financial Securities ◽  
Different Sources

PurposeAs multinational companies enter different countries, the extent of cultural unfamiliarity they face depends on their most recent entry. We examine this pattern of added cultural distance between a newly entered target country and the closest previous one and its effect on ownership decisions in each cross-border acquisition (CBA). We also examine the combined effect of added cultural distance and time between successive acquisitions on such decisions.Design/methodology/approachThe sample came from the Thomson Financial Securities Data Corporation (SDC) Platinum database, which spans different source and target countries for a 25-year period (1980–2014). We collected firm- (acquirer and target), industry-, country-, and transaction-level variables from SDC. After merging information from the different sources, the final sample comprised 10,423 CBA observations from 138 target countries.FindingsOur findings reveal that the ownership share decision is affected negatively by added cultural distance but positively by the time between two successive acquisitions. In addition, prior ownership and geographic distance moderate the relationship between added cultural distance and ownership in CBAs.Practical implicationsOur findings suggest that MNCs' managers who consider CBAs need to carefully examine closest previous target information and CBA experience, rather than focusing on direct cultural distance between the focal firm and target firm. Additionally, they should also consider the relevance of key contingency factors.Originality/valueWe disentangle the effects of added cultural distance on CBA ownership decisions and explore the boundary conditions of this relationship.

scholarly journals Career cooperation, coordination, compatibility and co-working

2020 ◽  
Vol 35 (2) ◽  
pp. 121-139
Author(s):  
Susan Shortland
Keyword(s):  
Oil And Gas ◽  
Small Sample ◽  
Dual Career ◽  
International Assignments ◽  
Heterosexual Relationships ◽  
Strategic Choices ◽  
Content Type ◽  
Oil And Gas Exploration ◽  
Coordination Strategies ◽  
Work Abroad

Purpose The purpose of this study is to examine how female expatriates mobilise couples’ dual-career coordination strategic choices to achieve their own and their partners’ desired career goals. Design/methodology/approach This qualitative research is based upon in-depth interviews with 20 dual-career female expatriates working in two case study oil and gas organisations. Findings Female expatriates use a series of tactics ranging from cooperation in maintaining a dual-career hierarchy, through to coordinating aspects of their own and their partners’ assignments, undertaking compatible industry roles and co-working (working together in the same organisation) to attempt to achieve a greater egalitarian international dual-career strategic outcome. Research limitations/implications This case analysis was based on a relatively small sample of female expatriates in heterosexual relationships working in oil and gas exploration. Further research in different sectors, with larger samples, and with male expatriates is also needed. Practical implications Employers should minimise periods of separation by focussing on coordinated assignment timings for both partners, facilitate suitable employment for both partners who wish to work abroad, and prioritise securing partner work visas. Social implications The inability to pursue desired dual-careers together while undertaking international assignments can be detrimental to couples’ relationships, potentially leading to unwillingness to expatriate and thereby deliver necessary skills in the host country. Originality/value The originality lies in identifying the tactics women use to enact dual-career coordination strategies, including coordinating assignment timings and locations to reduce separation and pursuing compatible roles to achieve egalitarian career and relationship outcomes. While women expected co-working in the same firm to facilitate dual-career mobility, its career outcomes were disappointing.

Schedule delays in engineering, procurement, and construction petrochemical projects in Vietnam

2014 ◽  
Vol 8 (1) ◽  
pp. 3-26 ◽  
Author(s):  
Linh Hong Pham ◽  
Harimurti Hadikusumo
Keyword(s):  
Business Process ◽  
Large Scale ◽  
Business Models ◽  
Case Analysis ◽  
Clear Understanding ◽  
Content Type ◽  
Purposive Sampling ◽  
Root Cause ◽  
Schedule Delay ◽  
Cross Case Analysis

Purpose – Petrochemical projects play a very important role in the economic development of Vietnam. For the past ten years, many large-scale petrochemical plants have been developed using the engineering, procurement and construction (EPC) project delivery system for completing the project faster. However, many projects have suffered from schedule delays. In order to solve the delay problem, a clear understanding of the EPC business model and its delays problems are studied in this research. A qualitative research method by using case study on selected EPC projects was adopted. This paper aims to define the current business models used in the Vietnamese petrochemical industry and explores the root cause of delays. Design/methodology/approach – The research methodology used in this study is multiple case studies by purposive sampling on EPC projects. This is chosen due to the limited number of EPC projects in petrochemical in Vietnam and to obtain schedule delay factors from both delayed and on-time projects. In this purposive sampling, the researcher decided on what needs to know and sets out to find the people who can and are willing to share their information. From each project, project manager and project engineer were interviewed to understand the delay factors in their EPC projects. Data from the interview were analyzed by using “pattern coding” described by Miles and Huberman. Then, cross-case analysis was used to identify the common and unique factors occurring in each case. By comparing the three cases, the authors can identify the delay factors in EPC petrochemical in Vietnam. Findings – By interviewing the management level officers in three cases and performing exploratory work on the secondary data, it was observed that the local and foreign contractors of EPC projects in Vietnam have generally similar business process. Then, the codes were grounded based on the EPC business process, and subjected to the cross-case analysis. The root cause of problems in each phase was provided. Originality/value – The paper fulfills an identified root cause of EPC projects in Vietnam.

Consumers’ reactions to cross-border acquisitions

2019 ◽  
Vol 122 (2) ◽  
pp. 655-677
Author(s):  
Riccardo Resciniti ◽  
Michela Matarazzo ◽  
Gabriele Baima
Keyword(s):  
Experimental Design ◽  
Corporate Reputation ◽  
Design Methodology ◽  
Consumer Perceptions ◽  
Psychic Distance ◽  
Target Firm ◽  
Content Type ◽  
Cross Border ◽  
Acquiring Firms

Purpose The purpose of this paper is to focus on consumers’ reactions to cross-border acquisitions (CBA) by exploring the role of consumer perceptions of the psychic distance between the country of the acquirer and that of the target firm when the acquiring corporation has a good or poor reputation. Design/methodology/approach A 2×2 experimental design which manipulated psychic distance and acquirer’s corporate reputation was conducted in Italy. The study considers an Italian food target firm and compares four foreign acquiring firms with different combinations of corporate reputation (good/poor) and psychic distance to Italy (small/large). Findings The authors found that the degree of psychic distance between the countries of the acquiring and targeted firms was inversely related to Italian consumers’ intentions to repurchase the products of the post-acquisition target, and unrelated to the acquirer’s corporate reputation. Originality/value This is the first study focusing on psychic distance in the context of CBA, especially from the perspective of consumer behavior, which can help to better understand certain negative reactions toward the acquisition of a business.

Israeli-Lebanese offshore gas race may raise tensions

2017 ◽  
Keyword(s):  
Oil And Gas ◽  
Prime Minister ◽  
Political Pressure ◽  
Content Type ◽  
Oil And Gas Exploration ◽  
Offshore Oil And Gas ◽  
Political Uncertainties ◽  
Offshore Oil

Significance The bids came from Greece’s Energean, an existing investor, and a consortium of Indian firms; there was little wider international interest. Neighbouring Lebanon’s first offshore oil and gas exploration round, which closed on October 12, was similarly disappointing, with just two bids received from one consortium consisting of France’s Total, Italy’s Eni and Russia’s Novatek. Impacts Political uncertainties following the resignation of Lebanese Prime Minister Saad al-Hariri could slow hydrocarbons exploration. The Lebanese government will be under domestic political pressure from NGOs to ensure transparency in its award of exploration licences. Israel will launch further bid rounds for the remaining blocks, but these are unlikely to produce a different result.

New tax law will help US energy sector

2018 ◽  
Keyword(s):  
Budget Deficit ◽  
Oil And Gas ◽  
Energy Sector ◽  
Tax Law ◽  
Short Term ◽  
Content Type ◽  
Oil Drilling ◽  
Oil And Gas Exploration ◽  
The Us ◽  
Tax Cuts

Subject Oil drilling in Alaska and the energy sector under the new US tax laws. Significance Speaking to reporters on January 16, Senator Lisa Murkowski (Republican, Alaska), said that she wants to seek a new bill that would promote further environmental protections in what is known as the 1002 Area. The 1002 Area is in Alaska’s Arctic National Wildlife Refuge (ANWR) and was opened for oil and gas exploration and drilling when President Donald Trump signed into law the Republicans’ tax reform bill on December 22 last year. Impacts Shareholders in refiners could see strong returns as the tax cut windfall is funnelled into higher dividends and share buybacks. If the tax cuts spur stronger short-term economic growth, US oil demand should accelerate, a bullish indicator for oil prices. If the tax cuts increase the US budget deficit, subsidies for the energy sector could be revisited.

African oil and gas exploration will look southwards

2019 ◽  
Keyword(s):  
South Africa ◽  
Southern Africa ◽  
Oil And Gas ◽  
Central Africa ◽  
Oil Industry ◽  
Content Type ◽  
Oil And Gas Exploration ◽  
West And Central Africa ◽  
Oil And Gas Companies ◽  
Key Industry

Subject African oil and gas exploration. Significance Stakeholders in the African oil industry met in Cape Town in early November, for the annual Africa Oil Week conference, amid speculation of new prospects in South Africa and Namibia. While several countries in West and Central Africa are offering acreage in licensing rounds, oil and gas companies are focused on upcoming wells in Southern Africa, which will dictate decisions on companies’ future exploration focus. Impacts Exploration success for Southern Africa’s most watched wells could bring an investment boost to new areas, such as South Africa. Angola and Nigeria will try pushing reforms and new licensing to revive a largely moribund exploration sector to renew reserves and growth. IOCs will need more reassurance before committing to new Nigerian investment after Buhari's failure in 2018 to sign a key industry bill.

Teacher mentoring and the reflective practitioner approach

2017 ◽  
Vol 6 (3) ◽  
pp. 210-227 ◽  
Author(s):  
Michelle Attard Tonna ◽  
Eva Bjerkholt ◽  
Eimear Holland
Keyword(s):  
Student Teachers ◽  
Critical Reflection ◽  
Case Analysis ◽  
Data Sets ◽  
Developmental Approach ◽  
Teacher Mentors ◽  
Content Type ◽  
Mentoring Practices ◽  
The Republic ◽  
Cross Case Analysis

Purpose The purpose of this paper is to focus on reflective mentoring practices. Teacher mentors are widely known to be an important catalyst for reflection. Through dialogue and professional conversations, teacher mentors can help their mentees to improve their teaching performance by facilitating their discussion of the praxis from different perspectives. Design/methodology/approach This qualitative mixed methods study is based on three separate studies from the Republic of Ireland, Malta and Norway involving: mentors of undergraduate student-teachers (U-M, n: 37); mentors of newly qualified teachers (NQT-M, n: 4); student-teachers (ST, n: 16); NQT, n: 8; and university tutors (UT, n: 8). In each study, mentors were provided with varying degrees of education on facilitating critical reflection for mentees. This study sought to draw out what reflective practices were being employed in mentoring across European contexts and what perceived impact they had. A cross-case analysis of data across the three countries was conducted using coding and constant comparison. Triangulation of data was employed across not only cases, but also across multiple methods data sets and across participant types. Findings All three studies reveal that mentoring approaches aiming to promote critical reflection have to be based on a developmental approach towards mentoring. They also have to challenge traditional hierarchical relationships and involve a commitment to collaborative, inquiry-oriented approaches towards mentoring. Research limitations/implications By bringing different studies of reflection in mentoring practices together, it is possible to gain new knowledge on mentoring in teacher education. However, being a cross-country, cross-context and cross-cultural approach in itself contains certain restrictions. Originality/value The authors of this paper propose that professional forms of inquiry depend on the type of relationship and collaboration forged between the teacher mentor and mentee. A cross-case analysis approach provided evidence of reflective practice, which is common across three European countries and offers a snapshot of trends.

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