Search results

This paper aims to identify the role of language in international business context, especially in a post-merger integration (PMI) process, and to develop a framework for language strategies in a PMI context.

Based on the authors’ review and building on earlier works, this paper develops a conceptual model regarding the use of language in different PMI scenarios and identifies the key resource mix that may be suited for an effective deployment of language strategies.

The authors find that the use of a language at target firms depends on the degrees of strategic interdependence and organizational autonomy. They classify different constellations of targets in a PMI context and propose the most appropriate language strategies for different classification of PMI firms.

The authors develop five testable future research propositions based on our conceptual model. The paper is not without its limitations. The authors’ propositions need to be tested in future studies. It may be sometimes difficult to collect data based on all the four segments of firms using a quantitative design. It is also challenging to investigate about the language used at the target firms using quantitative designs.

The authors’ model has several practical implications for the managers. Bidder firm’s managers can decide the use of appropriate language depending on their acquisition strategy. It is very likely that target managers have to change the language following the acquisition, and because of this change, influence on their routines will be significant. This issue becomes most important if both firms do not speak the common corporate language – English language. The authors bring ideas for a best fit, which are applicable not just for merger and acquisition but also for other strategic sourcing areas such as outsourcing strategies.

There are several negative emotions that are invoked through language. Language is also power laden and affects social structure and group dynamics at work. By addressing the use of appropriate language strategies, people can potentially avoid the dark side of language.

The authors present testable propositions for future research in a PMI context.

This study aims to examine how the effect of host country formal institutional uncertainty on the percentage of equity sought in cross-border acquisitions (CBAs) is moderated by the host country industry (i.e. targets from the technology versus those from the non-technology industry).

This study is based upon the legitimacy perspective of institutional theory and uses Tobit regression analysis on a sample of 1,340 CBAs.

Results show that cross-border acquirers prefer a lower equity level for targets in institutionally less developed countries and that this negative effect of the host country institutional risk on the equity percentage sought is more pronounced for technology-based targets.

Three major limitations of the study are as follows: The data were collected from only Japanese acquirers. The study measured formal institutional uncertainty by applying only secondary data. The study used the Bloomberg Industry Classification Systems, instead of the Standard Industry Classification that has been used widely in prior studies.

This study shows that the industry selected has a bearing on equity sought in CBAs. Investing in institutionally less developed countries is particularly challenging when the targets of acquisition are in the technology industry.

To the best of the authors’ knowledge, this is the first study that investigates the moderating effects of an industry on the relationship between host country formal institutional uncertainty and the percentage of equity sought in CBAs.

In this paper, the knowledge-based view of the firm is applied to theoretically elucidate and empirically examine the influence of target industry growth on premium payments in cross-border acquisitions. This study aims to extend internally driven Mergers and Acquisitions research efforts of acquirers to industry contingencies of targets by analyzing cross-border acquirers located within the group of seven (G7) countries.

This study’s investigation covers 209 cross-border acquisitions from 2012 to 2019 undertaken by firms located within the G7 countries. This paper used generalized estimation equations method to test the hypotheses applying Gaussian distribution for the dependent variable, an identity link function, exchangeable correlation structure and robust standard errors.

This study’s results reveal that target industry growth determines premiums. Furthermore, this study shows that acquirer industry growth, as well as acquirer slack, moderates this relationship. This study is built on the notion that industry contingencies influence premiums even when target firms are based in foreign countries.

To the best of the authors’ knowledge, unlike other studies, this is the first to explicitly focus on premiums for multiple cross-border acquisitions by hand selecting nine years of industry sale figures for 53 industries separately in each of the G7 nation countries (leading to 371 separate downloads of data samples). This study contends that industry growth of cross-border targets matters for premium payments.

The purpose of this paper is to examine the conceptualization of knowledge transfer and technology transfer to seek answers to the question: Why should an organizational manager need to know the difference between knowledge transfer (KT) and technology transfer (TT)?

An extensive literature review method was used to identify and analyze relevant international publications. The literature sources are categorized as follows: literature on KT only, literature on TT only and literature on comparative analysis on KT and TT. The conceptualization of KT and TT is based on signaling theory.

The authors identified differences between KT and TT based on six dimensions, namely knowledge versus technology characteristics, usage of KT and TT in national development, sender versus receiver, intra-firm versus inter-firm transfer, foreign direct investment (FDI) and workers’ mobility.

This is a conceptual analysis that should contribute to the existing literature by comprehensively reviewing the processes of KT and TT based on selected research conducted worldwide as well as suggest practical guidelines to organizational managers in managing KT and TT.

This review could shed new insights for future researchers to validate and examine the identified differences between KT and TT so that managers could make use of the findings to manage KT and TT successfully in their organizations.