Critical success factors determining performance of cross‐border acquisition: Evidence from the African telecom market

• Published in: Thunderbird international business review Vol. 63; no. 1; pp. 43 - 61
• Main Authors: Dhir, Sanjay, Rajan, Rishabh, Ongsakul, Viput, Owusu, Richard Afriyie, Ahmed, Zafar U.
• Format: Journal Article
• Language: English
• Published: Hoboken Wiley Subscription Services, Inc., A Wiley Company 01.01.2021; Wiley Periodicals Inc
• Subjects: Absorptive capacity; Affärsinformatik; Business Informatics; case study; knowledge; Knowledge management; Marketing; Markets; Marknadsföring; Organizational learning; postacquisition; technology; Telecommunications; TISM; South Africa
• ISSN: 1096-4762; 1520-6874; 1520-6874
• DOI: 10.1002/tie.22156

This study investigates the factors affecting Bharti Airtel's cross‐border postacquisition performance in an African market. This study describes the relationships among various factors such as technical capability, affiliated firm's absorptive capacity, and organizational learning capabilities, which determine the successful operations of the Zain acquisition deal in South Africa. This paper adopts a qualitative approach to identify factors that influence the postacquisition performance. Seven factors are identified based on the literature. Consequently, it has become a necessity to encapsulate these factors in suitable proportions. In this study, we have developed a total interpretive structural modeling (TISM) to analyze the postacquisition performance of Bharti Airtel in South Africa. Our research has highlighted six dynamic factors (organizational learning capability, knowledge management, technology capability, technology relatedness, acquirer's absorptive capacity, and national culture difference) that affect the firm's postacquisition performance. The interpretive structural model (ISM) and total interpretive structural model for postacquisition performance are built‐up. The developed TISM will support academics and practitioners to develop their understanding of acquisition performance of parent companies in the context of telecom business in the South African market.