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This paper aims to reveal how institutional distance, institutional quality and government involvement may shorten M&A deal durations in Brazil. Therefore, t paper explains the determinants of M&A deal durations from the perspective of an emerging country acquirer.

The authors use a distinctive data set from the Thomson SDC Mergers and Acquisitions Database and Zephyr, covering both public and private M&As in Brazil. This sample includes all cross-border M&As in Brazil between 2000 and 2015. They used hierarchical ordinary least squares (OLS) regression to analyze the data set.

The findings show that informal institutional distance between Brazil and host countries does not impact deal durations when the target is from a developed host. Nonetheless, Brazilian deals involving developing country targets exhibit a positive association between institutional distance and deal durations. The results also reveal that stronger institutional quality reduces the duration of M&A deals executed by Brazilian firms in developed countries. However, no association was found in emerging countries. Finally, government involvement in Brazilian acquirers’ deals did not impact M&A completions in developed countries but prolonged the transactions in emerging countries. Therefore, the outcomes of government involvement occurred differently in developed and emerging host countries and did not manifest as a resource-based advantage.

The authors extend the literature by simultaneously explicating the country-, i.e. institutional distance and institutional quality, and firm-level, i.e. government involvement effects on M&A deal duration from an emerging country acquirer perspective. Second, the authors shed light on the unique impact of government involvement in cross-border M&As, including emerging-developed and emerging-emerging country pairs, on the speed of M&A completions.

This study aims to advance and analyze the influence that firms’ diversification approach brings to the businesses’ performance via competitive advantage (CA) and access to capital in a developing economy.

Using primary mode, the present study uses the sample of 104 diversified manufacturing firms to analyze the conditional indirect effect of firms’ diversification approach on efficient resource allocation using SAS process macros.

This study corroborates that in the era of uncertainty (when businesses are struggling to survive), a diversification approach can help the firms to build resilience against uncertainties to achieve resource allocation efficiency. Furthermore, findings also reveal that for successful strategic implementation firm’s access to capital (tangible and intellectual capital) play a critical role.

Theoretically, this study has made a sizeable contribution to the resource-based theory of a firm’s literature with a new compositional-based theoretical perspective and also by providing an insight into the relationship between strategic approaches, access to capital and resource allocation efficiency. However, the current study’s ability to provide a deep understanding of the phenomenon was restricted by the lack of data availability and a self-reporting questionnaire approach.

Potential applications of the current research exist for manufacturing industry managers and policymakers to achieve efficiency and CA. This study provides evidence of the obstacles to diversification discounts while allocating resources. At the same time, it provides a crucial connotation for maintaining distinctive tangible and intangible capital for value addition.

The current study fills out by investigating the conditional indirect effect of access to capital in industrial era 4.0. Moreover, according to researchers’ knowledge, this study is the first to establish and empirically investigate a comprehensive model that involves a strategic approach, access to tangible and intellectual capital and performance outcome obtained through the integration of all these crucial factors.