Alliance and Acquisition Management Capabilities and Performance Outcomes of Indian MNEs

Purpose - The purpose of the study is to analyse dynamic capabilities of emerging market firms, contributing to research on the relationship between dynamic capabilities and firm performance. The paper develops six hypotheses, employing a dynamic capability perspective to analyse alliance and acquisition management capabilities of Indian multinational enterprises (MNEs) and their performance outcomes. Design/methodology/approach - This research analyses 217 Indian MNEs from 19 industries and specific outcomes of value generation and firm performance as important consequences of alliance and acquisition management capabilities. Regression analysis was undertaken to empirically test the hypotheses. Findings - Analysis found support for five of the hypotheses – longevity of experience, geographical depth, quantum of mergers and acquisitions (M&As), co-marketing and joint ventures as factors that have a positive effect on firm performance and value generation.Originality/value - This study presents a conceptual framework to link EMNEs’ dynamic capabilities to firm outcomes, and introduces a novel concept of ‘scattered practice of dynamic capabilities’. This new concept builds on the concept of ‘higher-order dynamic capabilities’ from the field of strategic management. The paper argues that scattered practices in EMNEs will result in the outcome of ‘highest-order dynamic capabilities’