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What drives cross-border mergers and acquisitions? A study of Indian multinational enterprises

Vanita Tripathi (Department of Commerce, Delhi School of Economics, Delhi University, Delhi, India)
Ashu Lamba (Vivekananda Institute of Professional Studies, School of Business Studies, Delhi, India)

Journal of Strategy and Management

ISSN: 1755-425X

Article publication date: 16 November 2015




The purpose of this paper is to determine the motives of cross-border mergers and acquisitions (M & A) by Indian companies for the period 1998 through 2009. The study has also attempted to ascertain the post-merger paybacks realized by the sample acquirer companies. It also identifies the motives which help in improving the post-merger performance. The preference of the motives and post-merger paybacks realized across the development status of the host economy, age and industry of the company has also been found.


This paper uses a survey approach to collect the responses over the motives and post-merger paybacks. Statistical tools, namely, Likert scale, factor analysis, independent samples t-test and binary logistic regression have been used.


The study found that there are five motives of cross-border M & A – value creation, improvement in efficiency, market leadership, marketing and strategic motives and synergistic gains. The results also indicated that the acquirer firms expect cost and financial efficiency, stakeholders’ benefits and employee welfare post acquisition. The motive of value creation significantly improves the post-merger financial performance.

Research limitations/implications

The study has only considered the cross-border M & A but not domestic M & A.

Practical implications

The research is an attempt to understand the dynamics which are responsible for motivating Indian companies to go abroad for acquisitions. Thus, it would help the prospective Indian acquirer companies to focus on the motives which help in improving the post-merger financial performance.


This research paper is original as it explores the motivation of Indian companies for entering into cross-border M & A. It adds to the extant literature of cross-border M & A by emerging economies multinational enterprises.



The authors truthfully thank the Guest Editors, K.S. Reddy and four anonymous reviewers for giving fruitful suggestions that significantly improved the manuscript. Ashu Lamba was a Doctoral Candidate (availing UGC Research Fellowship) and she is grateful to her research guide Vanita Tripathi for her excellent guidance and support throughout the research period. The paper is under the scope of Ashu Lamba ' s doctoral research (November 2011-August 2014). The authors declare that they have no conflict of interest with regard to the text and material used in this paper. The usual disclaimer applies.


Tripathi, V. and Lamba, A. (2015), "What drives cross-border mergers and acquisitions? A study of Indian multinational enterprises", Journal of Strategy and Management, Vol. 8 No. 4, pp. 384-414.



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Copyright © 2015, Emerald Group Publishing Limited

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