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This paper aims to examine how Chinese multinational enterprises’ (CMNEs) autonomy-style post-merger integration (PMI) modes of managing developed-market targets evolve into actual-form integration through the lens of ambidexterity.

This study adopts multi-case comparisons with content analysis. A data set was collected from 37 conversations by in-depth interviewing 29 respondents regarding four cases of Chinese acquisitions in the German market.

This study develops a three-stage framework that theorised CMNEs’ autonomy PMIs’ evolution to actual-form integration over time and the effect on acquisition value based on structural, temporal and contextual ambidexterity manifestations. The findings divide the evolutionary trajectory into two sub-trajectories, from great autonomy to autonomy-integration balanced or full integration, to illuminate the effect of different degrees of actual-form integration on value creation or value destruction.

The existing literature on CMNEs’ PMI discovered that CMNEs frequently grant ample autonomy when managing targets acquired from developed markets. However, long-term acquisition benefit is dependent on combining autonomy and actual-form integration; insights into how this can be accomplished are limited. The research is unique in that it reveals the evolutions of CMNEs’ PMIs on developed-market targets, from autonomy to actual-form integration through the lens of ambidexterity.

This paper aims to examine how integration modes impact the acquirer knowledge diffusion capacity of overseas mergers and acquisitions (M&As) effected by emerging market firms and the role played by the global innovation network position of the acquiring firms in affecting this relationship.

Through the use of structural equation modelling and bootstrap testing, the hypotheses are tested by drawing upon a sample of 102 overseas M&As effected by listed Chinese manufacturing companies.

The results show that acquirers from emerging countries are unable to increase the knowledge diffusion capacity unless they choose the right post-merger integration mode. This paper also finds that the relationship between integration mode and knowledge diffusion is channelled through the centrality and structural holes of acquirers in the global innovation networks. When considering the combinations of different resource similarities and complementarities of the acquired firms, differences emerge in the integration model and network embedded path of acquirers in emerging countries.

Emerging market multinational enterprises should consider post-merger integration as a crucial facilitator to the crafting of global innovation network positions that promote knowledge diffusion. The choices of integration mode and brand management autonomy should be matched with the resource similarities and complementarities that exist between the acquirer and target firms.

Based on the resource orchestration theory and by focussing on network centrality and structural hole as the crucial links, this study provides a nuanced understanding of the relationship between post-merger integration and knowledge diffusion and sheds light on latecomer firms from emerging countries.

Technology acquisition is a common phenomenon of acquiring external knowledge, but we have a limited understanding of conditions in which the acquirer integrates the target or not. On one hand, the acquirer may have a policy to integrate the target to benefit from its prior knowledge. On the other hand, the target may face challenges in continuing its knowledge creation and the acquirer may want to provide it autonomy to not disrupt it. This paper aims to identify conditions in which targets tend to be less integrated after acquisitions, allowing them to maintain more autonomy and contribute more to knowledge creation.

We test our arguments in the empirical setting of the global biopharmaceutical industry using a difference-in-difference approach on a longitudinal dataset of matched patents. We examine self-cites received by patents belonging to acquirers and the targets before and after the acquisitions.

We find that, on average, the targets’ prior patents do not receive more self-cites after the acquisition. We conclude that this is because their R&D activities are disrupted, suggesting a higher level of post-acquisition integration. However, more nuanced findings reveal that it may not be the case all the time. When the target has more research experience, is international or is specialized in complementary technologies, prior patents of targets continue to receive more self-cites after the acquisition. It indicates that the targets in such conditions continue knowledge creation, suggesting a lower level of post-acquisition integration.

Our findings contribute to post-acquisition integration research. While post-acquisition integration downside is common, we present conditions in which such a downside may be less likely. We highlight that the context of an acquisition may be an important determinant of the extent of integration of the target. Moreover, we supplement the integration research (cultural, structural and human resource and leadership perspectives of integration) by adding a knowledge-based perspective to it. Such dynamics have important implications for acquirers and targets in deriving value from the acquisition.

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.

The purpose of this paper is to examine the impact of inter-group conflicts on the trust toward the acquirer and then further on cooperation intention after acquisitions in cross-border mergers and acquisitions (M&As), in the lens of the social classification theory. Two types of conflicts (realistic conflicts and symbolic conflicts) and a mediating mechanism (trust toward the acquirer) exhibit different effects on cooperation intention. The research further examines two moderating coping strategies (localizing management and assigning trustworthy expatriate managers) and tests their effectiveness in promoting trust toward the acquirer and increasing cooperation intention in cross-border M&As.

The research hypotheses were empirically tested in the context of post-acquisition of Chinese companies' cross-border M&As. In total, 600 questionnaires were provided to the research participants of 37 acquired firms/units from advanced economies of 12 Chinese companies, and 209 valid questionnaires were collected (the response rate is 34.83%). Confirmatory factor analysis was conducted to verify data validity and hierarchical multiple regression analyses were employed to test relational and moderating effects.

This research demonstrates that both realistic and symbolic conflicts can reduce the intention to cooperate, but the latter does not have a significant influence. The results also uncover that whether employees from acquired firms trust in their acquirers mediates the relationship between realistic conflicts and cooperation intention. Moreover, management localization (a measurement of whether local/original managers are retained with a high degree of freedom and autonomy after M&As) and trustworthiness of expatriate managers (a measurement of whether the assigned expatriate managers is trustworthy) positively moderate the relation between realistic conflicts and trust toward the acquirer. In addition, trust toward the acquirer mediates the interaction of realistic conflicts and management localization on the cooperation intention of the acquirers' employees.

This study examines how inter-organizational conflicts influence trust toward the acquirer and then cooperation intentions in the context of Chinese companies' M&A behavior of targets from developed countries and gain supportive evidence, which enriches the literature on the management of international M&As. By introducing two management localization and trustworthiness of expatriate managers into the model, the research deepens our knowledge of how to build trust toward the acquirer in cross-border M&As.

The extent to which emerging multinational enterprises (EMNEs) challenge extant international management (IM) theories is a question under current discussion. The purpose of this paper is to confront two classic theories (internationalization process model (IPM) and post-acquisition integration types) to several EMNEs strategies within their initial conceptual frameworks, exploring how their practices lead to extend and update existing models.

This paper compares the classic IPM with the development stages of iconic EMNEs. This reveals how EMNEs’ strategies can be analyzed within extant conceptual frameworks, extending their theoretical content. This approach is then applied to an empirical study of post-acquisition integrations conducted in France by EMNEs from 11 countries of origin.

Two theories are discussed, with suggested updates, within their extant frameworks, taking into account EMNEs’ strategies. First, the initial IPM is re-explored to reveal concentrated paths, from all quadrants of the framework. Similarly, post-integration typologies are updated, including the partnering approach frequently implemented by EMNEs, and the holding approach empirically identified with some specific features (subjection).

This paper combines an analysis of some iconic EMNEs’ internationalization processes and empirical data on up-market acquisitions by EMNEs from diverse countries of origin. It provides suggestions to update two IM theories.

Despite best intentions, mergers and acquisitions often do not live up to the expectations for performance. This study examined how the salience of multiple identities creates dynamics in postmerger integration processes and how these dynamics influence the acquisition of the target's capabilities.

The authors conducted an in-depth case study of a large American consumer goods multinational corporation's acquisition of a family-owned German beauty business and examined responses to decisions and events during the postmerger integration process.

The results show how and why efforts to acquire unique target capabilities might not deliver the hoped-for results. The authors discovered multiple identities that became salient during the postmerger integration process which subsequently influenced interpretations and reactions to decisions and events and which created intergroup dynamics. The authors also noted the role of language in making these identities salient. Such dynamics pose challenges to managing the postmerger integration process and to acquiring sought after capabilities.

This study reveals how different identities become salient in the interpretation of particular events and decisions, resulting in emotional and behavioral reactions and intergroup dynamics. Furthermore, it uncovers the role of language in making identities salient. This study offers further insight into identity dynamics when the capability of the target firm is the motive of the acquisition.

The purpose of this paper is to investigate the effects of two formal controls, namely target rigidity and process autonomy, on team adaptability and project success in new product development (NPD) projects. Target rigidity refers to performance goals that are non-negotiable once they have been set. Process autonomy refers to the extent to which a project team is free to choose ways to achieve its goals. Team adaptability is considered a key factor that explains the relationship between formal controls and project success.

Two separate models related to resource and cost measures are analysed, since different target types may influence managerial perceptions. This study uses data collected from a survey with 113 project managers as respondents.

The findings show that target rigidity and process autonomy support team adaptability. Furthermore, team adaptability mediates the impact of formal controls on project success. The effects are more pronounced for cost targets as compared to resource targets.

Firms can increase project success by using formal controls in such a way that they allow project managers to provide their teams with motivating guidelines (target rigidity) and discretion (process autonomy) to adapt to new circumstances.

This study reveals the impact of formal controls on NPD project success through team adaptability. A balanced use of target rigidity and process autonomy may help improving NPD project success.

Financial performance measures of State‐owned enterprise in China have assumed a more diverse role as a result of reform programmes which have introduced greater degrees of operating management autonomy, market responsibility and profit sharing incentives at the enterprise level. This paper reviews the changing role of accounting performance criteria in meeting the needs of operating managers of State enterprise who have an increased decision‐making autonomy, while also maintaining the needs of government bureaus for financial performance criteria related to economic planning and control at the regional and national levels. Using a case study of a State‐owned department store in Guangzhou, an assessment is made of the conceptual and practical difficulties facing China's policy‐makers in setting accounting ratio performance indicators for State commercial enterprises. An alternative set of primary financial performance indicators for such enterprises is constructed by considering approaches adopted in other socialist countries.

Since 1997, the Labour Government sought to respond to the dilemmas and consequences of the earlier New Public Management reforms, according to the two principles of joined‐up government and public service delivery. A key aspect of its reform programme has been the public service agreement (PSA) framework, a target‐based performance regime that acts as a vehicle for the majority of spending and policy decisions across government and on the ground. Analysing its implementation and success, the article suggests that, in theory, the PSA regime provides an important example of steering at a distance as a form of political leadership, wherein the role of the centre is to provide the strategic framework for policy delivery. However, there are several structural constraints that have impeded the effectiveness of the framework, such as the pervading Whitehall departmental culture, and the tensions between top‐down performance management and devolved autonomy on the ground.