Springboarding and activity load: Constraints on managerial attention and dependency on advisory firms in cross-border acquisitions

In this study, we aim to better understand the springboard perspective by examining how emerging market firms manage the process of ‘recursive’ cross-border acquisitions. Based on the attention-based view of the firm and resource dependence theory, we propose that ‘recursive’ CBAs augment activity load, limiting decision-makers' information processing capacity. As a result, acquiring firms depend on external resources in the form of more professional advisors. This relationship strengthens when the target firm has a greater degree of product diversity but weakens when the acquiring firm has context-specific experience. From 2000 to 2022, we used a multi-country sample of 2621 CBAs from Brazil, Russia, India, China, and South Africa and found support for our hypotheses.