Search results

Numerous firms in the automotive industry, to improve their competitiveness, have recently adopted mergers and acquisitions (M&As) strategies, particularly those in which a multinational enterprise from a developed country (DMNE) or a multinational enterprise from an emerging market (EMNE) acquires a DMNE. However, DMNEs in the industry typically do not acquire emerging market firms. In response, this paper aims to analyze that uncommon M&As process by focusing on the relationship between modes of post-acquisition acculturation and project management (PM) maturity. Because the literature addressing M&As does not correlate the acculturation process with project team maturity, this study seeks to partly fill that gap by proposing a framework for the relationship that draws upon Nahavandi and Malekzadeh’s (1988) research and Holmes and Walsh’s (2005) model.

This paper present qualitative research based on a case study in the automotive industry of a DMNE’s acquisition of a Brazilian firm. For data collection, this research conducted 14 in-depth interviews with managers, the transcripts of which were analyzed using content analysis.

Content analysis revealed differences between modes of acculturation perceived by the acquired and acquirer firms, as well as a gap between PM teams from both types of firm. A direct relationship emerged between the mode of acculturation and PM team, which constituted a factor driving the evolution of PM practices within the company. In recognizing that relationship, this research proposes and elucidates a framework that relates the mode of acculturation following the M&A process to PM maturity.

No previous research in the literature on M&As has analyzed post-acquisition acculturation and PM maturity in conjunction. For managers in post-acquisition companies, the proposed framework of this study is useful for understanding good management practices and, for project teams, for understanding the acculturation process.

The purpose of this paper is to analyse how dialogue can be used to promote post-acquisition socio-cultural integration. Specifically, it addresses questions regarding when and how companies can utilise dialogue to generate positivity regarding socio-cultural integration.

A single case study approach was adopted owing to its suitability for creating in-depth understanding in the context of socio-cultural integration. Primary data were collected via interviews, an employee satisfaction survey, and participant observation. Secondary data were obtained from the case company’s internal materials, such as strategies, integration workflows, and employee magazines. Analysis methods included descriptive statistics and thematic qualitative analysis.

The findings suggest that dialogue can be used to create positivity regarding socio-cultural integration throughout the stages of unfreezing, moving, and refreezing by actively engaging employees in voicing, listening, respecting, and suspending. It is proposed that cultural conflict during post-acquisition socio-cultural integration can be overcome through the generation of positivity; dialogue enables the collective management of emotions during post-acquisition integration by offering a platform for creating positivity and social cohesion; and due to its collaborative and engaging nature, dialogue provides an especially effective means of communication for overcoming cross-cultural conflict.

To the authors’ knowledge, this is the first attempt to showcase dialogue as a specific means of communication for creating positivity during cross-border socio-cultural integration. This study reached beyond comparative cultural research to offer views on positivity, emotion during socio-cultural integration, and dialogue as means for overcoming cross-cultural conflict.

The purpose of this paper is to increase understanding of the influence of behaviour factors (corporate cultural differences and transformational leadership) on acquisition performance, through the mediating role of speed of post-acquisition change (as a process factor), in the specific context of a transitional economy.

A model was tested on a sample of acquisitions in Serbia carried out by domestic and European companies. In total, 208 valid questionnaires were collected from 10 acquired companies. Linear regression analysis was used to test the research hypotheses. To test the mediator hypothesis, Baron and Kenny's (1986) procedure was used. Statistical significance of indirect or mediated effect was calculated with Statistical Product and Service Solutions (SPSS) macro provided by Preacher and Hayes (2004).

Mediator analysis shows that corporate cultural differences and transformational leadership have direct and indirect impacts on acquisition performance.

The results may be significant for managers involved in the processes of acquisitions, in terms of helping them to make appropriate decisions in different phases of an acquisition process, so as to obtain sufficient levels of employee commitment and trust to improve acquisition performance.

This research contributes to a better understanding of the relationships between behaviour factors and acquisition performance. In particular, no research into the speed of post-acquisition changes as a mediator variable between behaviour factors and acquisition performance has previously been conducted, to the best of the authors' knowledge. Thus, this research offers a unique understanding in the transitional economy context of Serbia.

The purpose of this paper is twofold: first, to examine the impact of organizational culture differences on post-acquisition performance, and second, to provide deeper understanding of the mechanisms through which the impact occurs introducing into the analysis the mediating effect of employee attitudes.

The sample is based on domestic and international acquisitions in Serbia carried out during the period 2002-2011. Linear regression models were fitted according to Baron and Kenny procedures for mediation analysis. Statistical significance of the indirect or mediated effect is calculated by using the bootstrap test.

The results show that organizational culture differences positively impact post-acquisition performance. Moreover, employee attitudes are found to be a partial mediator of the relationship between culture differences and post-acquisition performance.

The presented results are especially useful for managers involved in the processes of acquisitions indicating that culture differences, if properly understood and managed, can be a source of value creation. Further, the results of the analysis indicate that managers must monitor and evaluate employee attitudes towards changes and help employees to face the challenges of change, thereby contributing the improvement of post-acquisition performance.

Previous research of organizational culture differences in transitional economies is limited, and this study is the first empirical investigation of the impact of organizational culture differences on post-acquisition performance in Serbia. This paper aids researchers and practitioners to identify the specific cultural challenges in the context of transitional economies.

An increasing number of Chinese enterprises are involved in cross-border mergers and acquisitions (M&As). However, few Chinese enterprises have achieved successful integration, which plays a critical role in enhancing performance. The important field of cultural integration is currently facing major challenges. To identify the reasons for these challenges, studies have analyzed why cultural integration succeeds or fails and have suggested that cultural differences between acquiring and acquired enterprises are the primary obstacles to cultural integration. However, it is unclear how success can be achieved. The paper aims to focus on cultural integration from the perspective of acculturation to describe the penetration of cultural elements in M&As.

In adopting acculturation as our theoretical lens, the authors use the case study method to answer the following research question: “how can the cultural integration of Chinese enterprises be successfully achieved?” Two typical cases are examined: Lenovo’s cultural integration with IBM’s personal computer (PC) division and Haier’s cultural integration with Sanyo home appliance. First, using the exploratory case study method, the Lenovo–IBM PC division case is analyzed. The characteristics and relationships between cultural environments, employee adoption methods and acculturation patterns are summarized to reveal a cultural integration path. Second, the Haier–Sanyo home appliance case is analyzed using the confirmative case study method to test the findings of the Lenovo–IBM PC division case.

The results indicate that it is critical to achieve a dynamic fit between cultural environments, employee adoption methods and acculturation patterns during each stage of cultural integration (exploration, experimentation, reinforcement and fixing). The three constructs of these stages reflect the following evolutionary paths: “isolate-introduce-learning-chance taking”, “detecting-icebreaking-interacting-remodeling” and “specialized sections-senior managers-managers-employees”.

These findings contribute to the development of cultural integration and acculturation theories and serve as a reference for Chinese enterprises wishing to implement cultural integration strategies.

The purpose of this paper is to examine the influence of cognition on knowledge sharing between members of the acquiring and acquired organisations in the post-acquisition integration process. It specifically analyses differentiation between in-groups and out-groups, the perception of organisational identity and interaction among members of the acquired and acquiring organisations and how these three factors affect knowledge sharing.

The authors develop theoretical propositions and conduct an explorative pilot study on the basis of original interview data conducted with ten respondents in four Indian IT companies that have acquired firms abroad.

The authors find evidence for supporting the negative effect of in- and out-groups differentiation and the positive effect of interpersonal interaction on knowledge sharing among employees of the acquired and acquiring organisations. There was indicative, but less compelling, evidence for the negative influence of inter-group competition and the positive influence of perceived shared organisational identity on knowledge sharing. Different from the established view, the authors find that when Indian firms acquire firms abroad, they immediately initiate knowledge flows from the targets rather than going through a long period of integration prior to acquiring knowledge from the targets.

The paper contributes to the scholarly conversation on cognition and knowledge sharing and argues that firms that are located in developing economies and that acquire firms abroad behave in a way somewhat different from what Western literature postulates. This invites for further studies, both theoretical and empirical, to shed light on this phenomenon. The present paper is focused only on one country, India, and on a single industry, the IT industry. It is limited in its empirical part, mainly due to enormous difficulties in getting access to the field.

The study demonstrates how central individuals are to the process of knowledge sharing and the accomplishment of organisational objectives in a post-acquisition context. Managers should understand that the knowledge their employees possess is a strategic asset, and therefore how they use it is influential in attaining organisational goals in general, and acquisition integration objectives in particular. The creation of task- and project-related communities or groups can help in establishing a shared organisational identity, especially after the turbulent event of one company acquiring another one. The creation of communities or groups where socialisation is encouraged can lead to employees interacting with one another and developing a sense of belongingness with the community or group. Over time, this belongingness can translate into a shared organisational identity, which is beneficial for the organisation. The findings suggest that the creation of task- or project-oriented communities and groups is a powerful way to achieve that.

The contribution of the paper is fourfold. First, while macro orientation dominates literature on the growth of the Indian IT industry, this study is conducted at the individual level of analysis, by focusing on managers in acquiring Indian IT firms. Second, whereas studies that have examined cognition and knowledge sharing have done so mainly through social capital lenses, this paper focuses on factors that are based on the inherent tendency of human beings to categorise themselves and other individuals. Third, the paper examines the links between cognition and knowledge sharing in an exciting context, namely, post-acquisition integration. Finally, while research on both post-acquisition integration and knowledge sharing is biased towards a Western context, this study investigates knowledge sharing and post-acquisition integration in the context of a major non-Western emerging economy.

The purpose of this study is to follw the process perspective approach in post-M&A (mergers and acquisitions) integration studies, with a focus on human resource function, to make the research literature relevant to HR integration process up to date.

To the best of the author’s knowledge, limited systematic literature review and study in this interface has previously been published.

Therefore, this conceptual study filled in the research gap by pointing out a clear framework on HR integration in cross-border post-acquisitions, reviewing both the content and process of HR integration. This paper contributes to future research on the HR integration process perspective in theoretical directions.

It addresses the gap in research and opens the avenues for M&A researchers to consider HR as the strategic partner during M&As and to study HR aspects in an integrated process perspective view. This approach complements socialized reviews and it suggests a process perspective on how to dispersed themes and interrelate topics. It provide a clear process perspective helps to develop a concurrent research agenda, which can guide future work in the field.

In mergers and acquisitions (M&As) the culture of the acquired organization often represents a counterculture for the acquiring firm. The purpose of this paper is to present a case study of an acquisition of German FAST by the Israeli firm Aladdin, and exemplifies the post‐merger integration issues that arose as a result of the culture clash between amalgamating entities in the high‐tech industry.

The study used a qualitative research design because of the need for in‐depth understanding of the processes, local contextualization, causal inference, and the necessity to expose the points of view of the participants. Triangulation was one of the important means of increasing construct validity and substantiating findings and propositions.

The case study analysis covers the processes that affect M&A performance and elucidates a significance of the post‐merger integration approach that is implemented in cross‐border M&As.

The examination sheds light on the pre‐ and post‐merger processes and provides new insights into both.

The case study describes two international high‐tech companies before their merger, the negotiation process, and the post‐merger integration approach adopted by the acquiring firm. The study extends the existing limited knowledge about integration approach in implementation of international high‐tech mergers.

This empirical investigation studies the correlates and predictors of employees’ psychological outcomes during mergers and acquisitions (M&As) in the context of India. This study examined the role of different types of training initiatives (awareness training, human capital development training, and cross-cultural training) on building employees feeling of psychological empowerment and thriving. Further, second-order attitudes were studied in the form of employee satisfaction and commitment. A cross-sectional research design was adopted where quantitative and qualitative data were collected to investigate the interplay between the variables. Data were collected on an adapted standardized questionnaire from the employees of a public sector organization (N = 117) which had merged with a software company to deliver its IT services. Descriptive analysis, multiple correlational analysis, and stepwise regression analysis have assisted in exploring the different relationships amongst the variables. This study produces a prescriptive framework for merger success based on the model of growth and thriving (Spreitzer & Porath, 2012). Broadly, the results point towards the facilitative role of training in developing feelings of psychological empowerment, thriving, commitment and satisfaction with the merger, however qualitative data identified significant cultural undercurrents.