• Version
• Download 67
• File Size 753.03 KB
• File Count 1
• Create Date April 24, 2025
• Last Updated April 24, 2025

The Effect Of Cross-Border Mergers & Acquisitions And Firm Innovation On Firm Performance Among Mergers In Uganda

This study aimed at assessing the effect of cross-border mergers and acquisitions on firm performance in Uganda. It
was guided by the objectives of; determining the relationship between mergers and firm performance, establishing the
relationship between acquisition and firm performance, ascertaining the relationship between firm innovation and firm
performance as well as examining the joint relationship between M&A’s, firm innovation and firm performance.
A cross-sectional research design was applied with a quantitative research approach. a sample of 133 potential
respondents was purposively distributed among managers with 119 returning the filled questionnaires. This gave a
response rate of 89.47 percent. From the field, primary data was coded, cleaned and entered into SPSS version 25 to
extract frequency tables and inferential statistics of correlation and regression analysis to provide answers to the
research questions. The study also relied on expert judgment and CVI to test validity while reliability was determined
using Cronbach Alpha. The findings revealed a positive relationship between; mergers and firm performance,
acquisitions and firm performance and firm innovation and firm performance. Moreover, the study established that
both M&As and firm innovation jointly explain the variances in firm performance with firm mergers offering the
highest explanatory power for the variances in firm performance than acquisitions or innovation. In light of these
findings, it was recommended that entrepreneurs within different firms should explore opportunities for cross border
mergers and acquisitions especially among firms in the same industry. In the same way, there is need to undertake a
comparative analysis aimed at identifying firms that are in need of financial bailout because such firms can easily
welcome proposals for acquisition to ensure continuity of their operations. It was further recommended that firms
should continuously innovate their operations to come up with better ways of serving their customers. This could be
accomplished through carrying out continuous customer surveys where they can clearly identify customers’ unique
needs and whether the products on offer can match customers’ needs and preferences. Firms need to devote much
effort to increase their level of flexibility and financial soundness if they are to improve their performance. Such
measures include cost cutting strategies, budget reviews, and innovative revenue forecasts. These strategies will
minimize unnecessary expenditure hence boosting profitability.
Keywords: Cross-Border Mergers & Acquisitions, Firm Innovation and Firm Performance

Attached Files