The influence of strategic attention breadth on cross-border M&A performance
HUIMIN XIAO et al.
What the paper says
Purpose In cross-border mergers and acquisitions (M&As), executives generally pay attention to multiple strategic issues. Since attention is a finite resource, they must allocate it carefully across these competing priorities. The purpose of this paper is to explore whether focusing on a narrow or broad set of strategic issues is conducive to enhancing performance in cross-border M&As. Design/methodology/approach This paper uses the word frequency statistics of textual analysis and applies the Herfindahl index method to measure strategic attention breadth (SAB). Based on the data of Chinese cross-border M&A deals from 2010 to 2021, this paper uses the OLS regression and Heckman two-stage model to examine the impact of SAB on cross-border M&A performance. Findings The study shows a significant inverted U-shaped relationship between strategic attention breadth and cross-border M&A performance. A moderate breadth of strategic attention helps executives mitigate the threats of blind spots and cognitive overload in cross-border M&As. Cross-border M&A experience and executives' overseas experience serve as moderating factors, flattening the inverted U-shaped curve. Originality/value This paper provides new insights into the importance of strategic attention in international business. It verifies the nonlinear effects of executive attention breadth on cross-border M&A.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.