Prelims

Advances in Mergers and Acquisitions

ISBN: 978-1-78973-600-7, eISBN: 978-1-78973-599-4

ISSN: 1479-361X

Publication date: 17 June 2019

Citation

(2019), "Prelims", Cooper, C.L. and Finkelstein, S. (Ed.) Advances in Mergers and Acquisitions (Advances in Mergers and Acquisitions, Vol. 18), Emerald Publishing Limited, Bingley, pp. i-xviii. https://doi.org/10.1108/S1479-361X20190000018011

Publisher

:

Emerald Publishing Limited

Copyright © 2019 Emerald Publishing Limited


Half Title Page

Advances in Mergers and Acquisitions

Series Page

Advances in Mergers and Acquisitions

Series Editors: Cary L. Cooper and Sydney Finkelstein

Recent Volumes:

Volumes 1–2: Edited by Cary L. Cooper and Alan Gregory
Volumes 3–17: Edited by Cary L. Cooper and Sydney Finkelstein

Title Page

Advances in Mergers and Acquisitions Volume 18

Advances in Mergers and Acquisitions

Edited By

Cary L. Cooper

Alliance Manchester Business School, University of Manchester, Manchester, UK

Sydney Finkelstein

Tuck School of Business, Dartmouth College, Hanover, NH, USA

United Kingdom – North America – Japan India – Malaysia – China

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Emerald Publishing Limited

Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2019

Copyright © 2019 Emerald Publishing Limited

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A catalogue record for this book is available from the British Library

ISBN: 978-1-78973-600-7 (Print)

ISBN: 978-1-78973-599-4 (Online)

ISBN: 978-1-78973-601-4 (Epub)

ISSN: 1479-361X (Series)

Contents

About the Authors vii
About the Editors xiii
Acknowledgments xv
Introduction
Cary L. Cooper and Sydney Finkelstein
xvii
Chapter 1 A Research Agenda to Increase Merger and Acquisition Success
Mitchell Lee Marks
1
Chapter 2 Board Interlocks and M&As
Mike W. Peng and Joyce C. Wang
15
Chapter 3 M&A Advisors: Padding Their Pockets or Source of Expertise?
Janice M. Gordon, Gonzalo Molina-Sieiro, Kimberly M. Ellis and Bruce T. Lamont
27
Chapter 4 Workplace Diversity and Gender in Merger and Acquisition Research
Annette Risberg and Sofie Skovbo Gottlieb
51
Chapter 5 An Australian Case Study of Stakeholder Relationships in a Merger and Acquisition Process
Simon Segal, James Guthrie and John Dumay
65
Chapter 6 Family Businesses: Building a Merger and Acquisition Research Agenda
Olimpia Meglio and David R. King
83
Chapter 7 Making M&A Less Risky: The Influence of Due Diligence Processes on Strategic Investment Decision Making
Fadi Alkaraan
99
Chapter 8 Merging Cities
Janne Tienari, Kari Jalonen and Virpi Sorsa
111
Chapter 9 Varieties of Value in Mergers and Acquisitions: Time For a New Research Agenda
Sally Riad and Urs Daellenbach
125
Index 139

About the Authors

Fadi Alkaraan is a Senior Lecturer in Accountancy and Finance at Lincoln International Business School, the University of Lincoln (UK). He completed his postgraduate degrees (MA and Ph.D. Accounting & Finance) at the University of Manchester. He received his degrees of BA Econ (1990), BA Law (1993), PG Diploma Econ (1991) and M.Phil. Econ-Finance (1996) from the University of Aleppo. Fadi held various teaching and research positions at business schools including the University of Manchester (UK), Abu Dhabi University, United Arab Emirates University, Gulf Private University and Aleppo University and Grafton College of Management Sciences and Cork University Business School (Ireland). Fadi was promoted to Associate Professor of Accounting and Finance at Aleppo University in 2012. Fadi’s research interests mainly focus on current issues in strategic investment decision making and investment appraisal techniques, the influence of corporate governance practices on organisational performance and the influence of strategic control mechanisms on strategic investment decision making.

Urs Daellenbach is currently Head of the School of Management at Victoria University of Wellington and co-leader of an innovation research team for the Science for Technological Innovation National Science Challenge in New Zealand. His research interests have focussed on value creation and capture, drawing on the resource-based view of the firm, with a specific emphasis on contexts associated with strategic decision making for R&D and innovation. His research has been published in Industrial & Corporate Change, Journal of Management Studies, Long Range Planning, R&D Management, Strategic Management Journal and Strategic Organization.

John Dumay, Ph.D., is an Associate Professor of Accounting at Macquarie University, Sydney, Australia. Originally a Consultant, he joined academia after completing his Ph.D. in 2008. His thesis won the European Fund for Management Development and Emerald’s Outstanding Doctoral Research Award for Knowledge Management. John researches intellectual capital, knowledge management, corporate reporting and disclosures, research methodologies and academic writing. John has written over 80 peer-reviewed articles, book chapters and edited books, and is highly cited in Scopus and Google Scholar. He is the Associate Editor of the Journal of Intellectual Capital and Meditari Accountancy Research, Editor of the eJournal of Knowledge Management, on the Editorial Board of Advice of the highly regarded Accounting, Auditing and Accountability Journal, Journal of Knowledge Management and several other leading accounting and management journals.

Kimberly M. Ellis, Ph.D. Florida State University, is an Associate Professor at Florida Atlantic University. Building mainly on theories pertaining to learning and justice as well as the process perspective of acquisitions, her primary research examines multiple facets of the acquisition decision-making process. A second area of research interest focusses on two critical elements of a firm’s corporate social responsibility – its environmental management strategies and diversity initiatives. Her research has been published in the Academy of Management Journal, Strategic Management Journal and other outlets. In addition, Kimberly is a Founding Member of the Africa Journal of Management editorial review board, a Member of the editorial board of Strategic Organization, a Member of the editorial board at Journal of International Business Studies and an ad hoc Reviewer for the Strategic Management Journal, Journal of Management, Journal of Management Studies and British Journal of Management among other leading journals.

Janice M. Gordon is a Ph.D. Student in Management Strategy at Florida State University. Her research interests focus on intellectual property, knowledge transfer and innovation, both within the United States and in a global context.

Sofie Skovbo Gottlieb is a Research Assistant at Copenhagen Business School. She has a master’s degree in Diversity and Change Management from Copenhagen Business School and has gained experience as a Diversity Specialist in Nordea before returning to academia. Her focus is on gender, diversity and inclusion as strategic agendas in for-profit organisations.

James Guthrie is Distinguished Professor of Accounting, Department of Accounting and Corporate Governance, Macquarie University. He is a Joint Founding Editor of Accounting, Auditing and Accountability Journal, which is consistently ranked in the top five in the world. James has published 180 articles, 20 books and 45 chapters in books. He has over 21,000 citations to his work as measured by Google Scholar. In the international arena on his research topic areas, Professor Guthrie has been actively involved with the OECD, European and wider academic communities, as well as advisory work for the OECD dating back to 1998.

Kari Jalonen is a SCANCOR Postdoctoral Scholar at Stanford University, USA, and he is affiliated with Hanken School of Economics, Finland. His research interests lies in the negotiation of institutional complexity in organisational practice, and strategy work in public-sector organisations. His current work studies the crafting of a collective strategy in a city organisation as a dialogue between different institutional perspectives, showing how these are continuously brought together to coordinate organisational action and craft shared understanding. Kari also studies and develops more inclusive, collaborative practices of academic work as a member of the Nordic Open Writing Hub. His work has been published in leading journals such as Strategic Management Journal and Qualitative Inquiry.

David R. King earned his Ph.D. from Indiana University’s Kelley School of Business. He is currently the Department Chair and Higdon Professor of Management at Florida State University where he teaches undergraduate and graduate business strategy. Dave’s research appears in leading management journals, and it focusses on complementary resources, merger and acquisition integration and performance, technology innovation and defense procurement.

Bruce T. Lamont, Ph.D. University of North Carolina, is the Jim Moran Eminent Scholar of Business Administration in the College of Business at Florida State University. His research has been published in such outlets as the Academy of Management Journal, Academy of Management Review, Global Strategy Journal, Journal of International Business Studies, Journal of Management, Journal of Management Studies and Strategic Management Journal. He serves or has served on the editorial review boards for the Academy of Management Journal, Journal of Management, Journal of Management Studies and Strategic Management Journal and as Senior Associate Editor of the Africa Journal of Management. His current research addresses the effective management of acquisition integration processes, knowledge investments, entrepreneurship and novel applications and extensions of theory to the African context.

Mitchell Lee Marks is Emeritus Professor of Leadership at San Francisco State University and President of the consultancy JoiningForces.org, USA. His research has been recognised in ways including the Outstanding Contribution to Organizational Behavior award from the Academy of Management. He is the author of seven books – including Joining Forces: Making One Plus One Equal Three in Mergers, Acquisitions, and Alliances and has published scores of articles in practitioner and scholarly journals including Harvard Business Review, Academy of Management Executive, Journal of Applied Psychology and Human Resource Management. He consults with a wide variety of firms globally, advising on organisational change, team building, strategic direction, corporate culture and the planning and implementation of mergers and acquisitions. He has advised in over 100 cases of mergers and acquisitions. He is a Fellow of the Society for Industrial and Organizational Psychology and has been named one of the “World’s Top 30 Experts on Corporate Culture” for three years running.

Olimpia Meglio earned her Ph.D. in Management from University of Naples “Federico II”. She is currently an Associate Professor of Management at the University of Sannio. Her research interests lie at the intersection of strategic and organisational factors in mergers and acquisitions. Her works have appeared in leading journals such as Journal of Business Research or Human Resources Management. She has edited the Routledge Companion about Mergers and Acquisitions with Annette Risberg and David King.

Mike W. Peng, Ph.D. University of Washington, is the Jindal Chair of Global Strategy at the Jindal School of Management, University of Texas at Dallas. He is also a National Science Foundation Career Award winner and a Fellow of the Academy of International Business. Every year during the last four years (2014–2017), he has been listed among the top 70–95 most cited scholars in business and economics by The World’s Most Influential Scientific Minds (compiled by Thomson Reuters/Clarivate Analytics). His research interests are global strategy, international business and emerging economies, with a theoretical focus on the institution-based view.

Sally Riad is a Senior Lecturer in the School of Management at Victoria University of Wellington. Her research focusses on the social and strategic facets of organisation. Its inquiry is based on critical approaches to organisational topics including culture, identity, leadership, value, mergers and acquisitions. Her work has been published in international journals, such as Journal of Management Studies, Journal of Management History, Leadership Quarterly, Organization, Organization and Environment and Organization Studies.

Annette Risberg is Professor of Management and Organization at the Norway Inland University of Applied Sciences and Professor at Copenhagen Business School. She divides her research interests between diversity in organisations and mergers and acquisitions. In addition to publishing numerous journal articles on merger, she has also contributed chapters to Advances of Mergers and Acquisitions (Meglio & Risberg, 2012) and edited both The Routledge Companion to Mergers and Acquisitions (Risberg, King, & Meglio, 2015) and Mergers and Acquisitions: A Critical Reader (Risberg, 2006).

Simon Segal is a Ph.D. Candidate at Macquarie University, Sydney, researching the relationship between mergers and acquisitions (M&A) and stakeholders. He is Editorial Consultant to Dealreporter, a news and data service provider. Simon helped establish the Australian bureau of financial media group Mergermarket in 2005 where he was Bureau Chief and Asian Editor of Dealreporter. He is a Director of Mergermarket Australia. Simon has researched, edited, written, and commented on M&A for numerous media publications and television.

Gonzalo Molina-Sieiro is a Ph.D. Candidate at Florida State University. His research focusses on the link between the environment and strategic actions by individuals and firms, usually in an international setting. More specifically, his research has examined the effects of national institutions on international new ventures and the family determinants of firm internationalisation and cross-border acquisitions. He holds an MA in International Economics and Finance from Brandeis University.

Virpi Sorsa is an Assistant Professor at Hanken School of Economics, Helsinki, Finland. She is also the Programme Chair for Strategic Activities and Practices Interest Group in the Academy of Management. Her primary research interest is strategy work in city organisations, especially its inclusive and discursive aspects. Virpi is currently working on a research and development project that focusses on the assessment of changes in management and leadership in the Helsinki city organisation. Her work has been published in Organization, Management Communication Quarterly, Discourse and Communication and Journal of Business Research as well as in a number of edited books. She teaches courses related to organisation theory, strategic thinking and master’s theses work, and she emphasises a learner-centred philosophy in teaching.

Janne Tienari is a Professor of Management and Organisation at Hanken School of Economics, Helsinki, Finland. He is principal investigator in a research project on the strategification of cities, funded by the Academy of Finland. His research and teaching interests include strategy work, gender and diversity, managing multinational corporations, mergers and acquisitions, branding and media and changing academia from a critical perspective. His latest passion is to understand management, new generations and the future. Janne’s work has been published in leading organisation and management studies journals such as Academy of Management Review, Organization Science, Organization Studies, Organization, Human Relations and Journal of Management Studies.

Joyce C. Wang is a Doctoral Candidate at the Jindal School of Management, University of Texas at Dallas. She has published in the Academy of Management Learning & Education, Asia Pacific Journal of Management, Journal of Business Ethics and Journal of Organizational Behavior. Her research interests are corporate governance, international business and emerging economies.

About the Editors

Cary L. Cooper is the author and editor of more than 175 books and is one of Britain’s most quoted business gurus. He is The 50th Anniversary Professor of Organizational Psychology and Health at Alliance Manchester Business School, University of Manchester, UK. He is the President of the Chartered Institute of Personnel and Development, President of the British Academy of Management, a Companion of the Chartered Management Institute, and one of only a few UK Fellows of the (American) Academy of Management, past President of the British Association of Counselling and Psychotherapy and Past President of RELATE. He was the Founding Editor of the Journal of Organizational Behavior, former Editor of the scholarly journal Stress and Health and is the Editor-in-Chief of the Wiley-Blackwell Encyclopaedia of Management; now in its 3rd edition. He has been an Advisor to the World Health Organisation, International Labour Organization and European Union in the field of occupational health research and wellbeing, was Chair of the Global Agenda Council on Chronic Disease of the World Economic Forum (2009–2010, and a Member of the Global Agenda Council on Mental Health of the World Economic Forum) and is Immediate Past Chair of the Academy of Social Sciences (comprising 47 learned societies in the social sciences and 90,000 members). He was awarded the CBE by the Queen in 2001 for his contributions to organisational health and safety; and in 2014 he was awarded a Knighthood for his contribution to the social sciences.

Sydney Finkelstein is the Steven Roth Professor of Management and Director of the Center for Leadership at the Tuck School of Business at Dartmouth College, where he teaches courses on Leadership and Strategy. He also has experience working with executives at Dartmouth and other prestigious universities around the world. He holds degrees from Concordia University and the London School of Economics, as well as a Ph.D. from Columbia University in Strategic Management. Professor Finkelstein has published 23 books and 85 articles, with several bestsellers, including the #1 bestseller in the US and Japan, Why Smart Executives Fail. On Fortune Magazine’s list of Best Business Books, the Wall Street Journal called it

a marvel – a jargon-free business book based on serious research that offers genuine insights with clarity and sometimes even wit … It should be required reading not just for executives but for investors as well.

His latest bestselling book is SUPERBOSSES: How Exceptional Leaders Master the Flow of Talent, which was named one of Amazon’s “Best Books” on business and leadership for 2016. LinkedIn Chairman Reid Hoffman calls it “a leadership guide for the Networked Age.” Professor Finkelstein is a Fellow of the Academy of Management. He has had three books nominated for the Academy of Management’s Terry Book Award, the most prestigious such honour in the field. Professor Finkelstein is a recognised thought leader on leadership, strategy and corporate governance, and is listed on the “Thinkers 50,” the most prestigious ranking of management thinkers in the world. He is well known for his keynote speeches and television appearances, and is a regular columnist for the BBC.

Acknowledgments

We would very much like to thank Kate Freeman at Alliance Manchester Business School for coordinating this edition on behalf of the editors.

Introduction

Cary L. Cooper and Sydney Finkelstein

The Advances in Mergers and Acquisitions is a scholarly collection of reviews of research, theories and case studies of mergers and acquisitions (M&As) in a variety of contexts and countries. This volume is the 18th in this annual series exploring the following issues: why the success rate of M&As is still not very good, how Boards influence M&A activity, what the roles of M&A advisors are in the process, the role of diversity in the context of M&As, stakeholder relationships in the context of M&As, why research has not focussed on family businesses in the M&A field as much as it should, making M&As less risky as a strategic investment, merging cities, pre-merger and acquisition strategies and finally, how ‘value’ has been used or not used in M&As.

Mitchell Lee Marks explores why after 30 years of M&A research the success rate of M&As is still very low, and how human factors tend to contribute to their success or failure. Mike W. Peng and Joyce C. Wang explore how network ties formed by directors may shape M&A processes and outcomes. Janice M. Gordon, Gonzalo Molina-Sieiro, Kimberly M. Ellis and Bruce T. Lamont ask the question ‘are M&A advisors padding their pockets or a source of expertise’, basically what is the role of M&A advisors in this complex process. Annette Risberg and Sofie Skovbo Gottlieb explore the literature on women and minorities in the context of M&As, how and to what extent are diversity and gender issues studied in merger research. Simon Segal, James Guthrie and John Dumay assess the significance of stakeholder relationships in an Australian mega-merger case study. It highlights how M&A events relate to stakeholder behaviour. Olimpia Meglio and David R. King highlight the paucity of research on family businesses in the context of M&As, and how M&As ‘are primarily regarded as a tool to solve succession problems’. Fadi Alkaraan explores the influence of due diligence processes on strategic investment decision making in an effort to make M&As less risky. Janne Tienari, Kari Jalonen and Virpi Sorsa highlight now that little research has been done on city and municipality mergers, which are so important to the economy of individual countries, and how this research could shed light on organisational M&As. And finally, Sally Riad and Urs Daellenbach examine the concept of ‘value’ and its utility in M&A research, and in understanding the M&A process.

The research outlined in this volume, and all the past Advances books, is an important body of scholarship that should help minimise the negative consequences of M&As in the future, whether in personal, organisational or financial outcomes – and highlight good practice going forward, as businesses look for growth and value creation. We hope you will find this a useful addition to the M&A literature in an effort to improve the success rate of these ventures.

Cary L. Cooper and Sydney Finkelstein, Editors

Mitchell Lee Marks San Francisco State University, USA
Mike W. Peng Jindal School of Management, University of Texas at Dallas, USA
Joyce C. Wang Jindal School of Management, University of Texas at Dallas, USA
Janice M. Gordon Florida State University, USA
Gonzalo Molina-Sieiro Florida State University, USA
Kimberly M. Ellis Florida Atlantic University, USA
Bruce T. Lamont College of Business, Florida State University, USA
Annette Risberg Norway Inland University of Applied Sciences, Norway and Copenhagen Business School, Denmark
Sofie Skovbo Gottlieb Copenhagen Business School, Denmark
Simon Segal Macquarie University, Australia
James Guthrie Macquarie University, Australia
John Dumay Macquarie University, Australia
Olimpia Meglio University of Sannio, Italy
David R. King Kelley School of Business, Indiana University, USA
Fadi Alkaraan Lincoln International Business School, University of Lincoln, UK
Janne Tienari Hanken School of Economics, Finland
Kari Jalonen Stanford University, USA
Virpi Sorsa Hanken School of Economics, Finland
Sally Riad Victoria University of Wellington, New Zealand
Urs Daellenbach Victoria University of Wellington, New Zealand