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The increasing number of cases of developing country multinational enterprises (MNEs) buying assets from developed countries through merger and acquisition (M&A) calls for more systematic evidences on this area. As a typical and representative developing country, China has already drawn the world's attention with several high-profile cross-border M&As in recent years. By examining the recent evidences of Chinese outward M&A, this chapter reviews the main motivations of outward M&A among state-owned enterprises (SOEs) and non-SOEs, and presents an overall picture of China's outward M&A in the last decade. In doing so, this chapter intends to explore the crucial role played by the Chinese government in orchestrating its internationalization activities and the long-term implications on the competitiveness of Chinese firms in the global marketplace.

The primary purpose of this chapter is to offer a conceptual/theoretical understanding of post-M&A integration rationales and/or actions which pose a challenge to acquired firm customers in acquisitions of knowledge-intensive firms, and thus trigger M&A value destruction. The approach takes the form of a literature overview and conceptual development. As a step toward developing a more elaborate understanding of a customer-centered perspective, this conceptual study identifies five key factors that may lead to value leakage/destruction for acquirers’ of knowledge-intensive firms. Specifically, it identifies acquisition motive, specific acquired firm employees other than the engineers and scientists, size of the acquired firm customer-base, M&A customer compatibility, and the acquirer’s own customers’ behavior as integration rationales and/or actions which pose a challenge to acquired firm customers. In addition, the chapter offers a theoretical framework that serves as an analytical tool, and can thus be used as a foundation for future empirical work on analyzing acquirers’ destruction of value in knowledge-intensive acquisitions through the neglect of acquired firm’s customers. This study does not claim to have provided exhaustive list of all factors regarding acquirer’s integration rationales and/or actions that influence acquired firm customers. Nonetheless, for researchers seeking to build a more comprehensive framework relating to the impact of acquirer’s integration rationales and/or actions on acquired firm’s customers, this framework may serve as a solid foundation for achieving that goal. For practitioners, this study points to the importance of knowledge held by acquired firm customers and the need to maintain such customer relationships in order to avert acquirer’s post-M&A value destruction. In addition, acquirers may also recognize that post-M&A integration changes required following M&A should not be restricted to only the firm’s internal activities and resource deployment but should extend to how the firm interacts or relates with other external value creation actors. This chapter contributes by highlighting and stimulating a discussion on the important role of acquired firm customers in acquisitions of knowledge-intensive firms in informing our understanding of the sources of M&A value leakage/destruction.

We present an empirical investigation into how customers and competitors respond to merger and acquisition (M&A) activity, using data obtained from business-to-business customers of logistics industry acquisitions. We draw on the M&A and marketing literatures to develop a set of hypotheses about how customer loyalty may be affected by a supplier's involvement in an acquisition, including the influence of competitors reactions. Our data confirm that customers purchase behaviours can be affected by M&A activity, both positively and negatively, and we find support for a causal chain whereby post-acquisition integration actions cause changes in key customer relationship variables, which in turn drive changes in customer loyalty. Our results also provide empirical evidence of the significant role that competitors responses can play in reducing customer loyalty following an acquisition. We identify a number of factors that appear to influence the magnitude of competitors reactions, namely the scale and scope of the acquisition, the form of post-acquisition integration pursued and the ‘stickiness’ of existing customers. The implications of our findings for future research, as well as for executives engaged in M&A activity, are discussed.

Over the last decade, the sustainability concept has progressively enticed both practitioners and researchers around the world. Despite the research interest in the role of sustainability in mergers and acquisitions (M&As), a number of critical questions remained unanswered. The aim of this chapter is to review and synthesize the existing research on sustainability and M&As in the fields of management, international business, finance, accounting, and economics and identify avenues for further research. The literature review has been organized according to the process perspective of M&As, that is, the pre-M&A and post-M&A phases. The review of the literature revealed that most of the existing literature used proxies of sustainability such as environment, social, and governance (ESG) rating or corporate social responsibility (CSR) and attempted to examine the relationship between ESG/CSR performance with stock market reaction and returns. While a small but growing number of studies examined the role of sustainability in M&As, there are scopes for further research. This chapter puts forward a research agenda that calls for a more granular examination of the role of sustainability in pre-M&A phases such as the target selection process, that is, due diligence and negotiation process in domestic and cross-border M&As. Moreover, future studies should investigate the role of sustainability during the post-M&A phase, for example, integration of sustainability practices during the post-M&A stage.

In this chapter, we focus on virtual teams and emotions during postmerger and acquisition (M&A) integration. Our main research question is “How to manage emotions and virtual teams following cross-border M&A?”. We answer this question through the following research subquestions: (1) What virtual interaction can be identified post-M&A?; (2) What emotions arises from virtual communication; and (3) What emotions and challenges do virtual teams encounter following cross-border M&As? This research is based on a single case study. The main findings imply that emotions, trust, and cultural differences play an important role in virtual interaction following a cross-border M&A.

In this chapter, we examine the role of M&A (mergers and acquisitions) leadership by conducting a review of recent empirical studies on M&A leadership. Our aim is to provide an overview of the current state of knowledge concerning M&A leadership. More specifically, we examine how M&A leadership has been studied (i.e., study methods, data sources), where M&A leadership has been studied (i.e., geographic distribution, industries, level of analysis), which leadership M&A outcomes and M&A leadership perspectives have been examined, and finally, how M&A leadership influences post-M&A outcomes. This allows us to identify main areas of interest and provide suggestions for further research.

Cross-cultural mergers and acquisitions (M&As) can generate the number of negative feelings and emotions among the survivors of the deal. These negative outcomes can range from lowered commitment, lack of productivity, and talent loss to the more serious work alienation. Hence, this chapter is an attempt to identify the employees’ level of commitment and their feelings of alienation in the post-M&A integration phase. Also, provided training has proven to be important in building employee commitment and mitigating the feelings of alienation, this studies the relationship of these psychological outcomes with the different kinds of training provided to them during post-M&A situations. The vast literature review studied revealed a significant relationship between employees’ perceived effectiveness of training and their level of commitment with the newly merged firm, while an inverse relationship was found with employees’ feelings of alienation. This chapter has crucial implications for researchers and practitioners.

This chapter aims to make sense of the growing research that examines the role of culture in mergers and acquisitions. We provide a detailed review of the many related but distinct constructs that have been introduced to the literature. While each construct has contributed to our understanding of the role of culture, the lack of connections made among constructs has limited the consolidation of contributions. The review shows what these constructs mean for mergers and acquisitions, what major findings have been discovered, and, most importantly, how constructs interrelate. Our discussion provides several opportunities to foster the needed consolidation of this research.

This chapter develops a decision-making framework to analyze important dimensions of mergers and acquisitions. Using a PLS approach, we show that strategic deals’ performance – measured by means of synergy realization, relative performance (compared to the competition), and absolute performance – is determined by three dimensions: strategic logic, organizational behavior, as well as finance. We find that the following significant variables, which stem from each of these dimensions, should be taken into account to ensure a successful deal: market similarities, market complementarities, operational similarities, operational complementarities, market power, purchasing power, acquisition experience, relative size, and due diligence.

Mergers and acquisitions (M&As) typically accelerate target top management team (TMT) executive departures. Market discipline and Relative Standing are two major and competing economic and sociological explanations for this phenomenon which lack a satisfactory theoretical integration. To fill this gap in the literature, we model the M&A market as a complex adaptive system composed of TMTs which rid themselves of executives via self-organized critical processes, generating M&A market-level properties that are emergent, or not easily explained with reference to the individual TMTs. The observation of an emergent power law distribution in target TMT executive retention rates for M&A activities in the United States supports our interpretation.