Unpacking the dynamics: The influence of M&A networks on e-innovation in African Listed Firms

Abstract

Purpose: This study examines the impact of mergers and acquisitions (M&A) networks on e-innovation networks within African-listed firms. It provides empirical evidence of how M&A influences e-innovation, emphasising the roles of resource acquisition and market dynamics in promoting innovation, technological advancement, and economic growth.

Design/methodology/approach: Employing a quantitative research design, this study analyses the relationship between M&A and e-innovation networks among African-listed firms. Through purposive sampling, it evaluates 238 firms involved in M&A transactions from 2010 to 2023. Multiple regression models are used to test hypotheses regarding the structural characteristics of M&A networks and their impact on e-innovation, with robustness tests conducted to ensure reliability. This approach offers insights into how resource acquisition and market volatility influence e-innovation within the African corporate context.

Findings/results: The study reveals that M&A networks significantly impact e-innovation networks in African firms, with resource acquisition enhancing e-innovation capabilities. Additionally, market volatility further strengthens this relationship. These findings suggest that leveraging M&A networks is vital for fostering innovation across various firm types, and targeted governmental support could enhance these effects.

Practical implications: The results indicate that M&A networks can substantially boost e-innovation in African firms. Businesses are encouraged to pursue strategic mergers to access new technologies and drive economic growth, while policymakers should support M&A activities that align with innovation and economic development goals.

Originality/value: This article explores the role of M&A networks in influencing e-innovation within African-listed firms, filling a significant gap in the existing literature and offering valuable insights for corporate strategists and policymakers.