TITLE

Postacquisition Management and Performance of Cross-Border Acquisitions

AUTHOR(S)

Ahammad, Mohammad F.; Glaister, Keith W.

PUB. DATE

September 2011

SOURCE

International Studies of Management & Organization;Fall2011, Vol. 41 Issue 3, p59

SOURCE TYPE

Academic Journal

DOC. TYPE

Article

ABSTRACT

This study investigates the impact of the postacquisition management process on the performance of cross-border acquisitions (CBAs) using data from a sample of CBAs made by U.K. firms. We find that knowledge transfer to and from the acquired firm is a significant positive determinant of CBA performance. The findings also indicate that the level of integration positively influences CBA performance. There is limited support for the view that employee retention positively influences CBA performance. There is also limited support for the view that organizational cultural differences negatively influence CBA performance.

ACCESSION #

66238175

Tags: CONSOLIDATION & merger of corporations;  KNOWLEDGE transfer (Communication);  EMPLOYEE retention;  CORPORATE culture;  CROSS-cultural differences;  PERSONNEL management;  CROSS border transactions

 

Related Articles

• Cross-border transfer of knowledge: Cultural lessons from Project GLOBE. Javidan, Mansour; Stahl, G�nter K.; Brodbeck, Felix C.; Wilderom, Celeste P. M. // Academy of Management Executive;May2005, Vol. 19 Issue 2, p59 

  Distant cross-border business is on the rise. It necessitates effective transfer of knowledge across geographic and cultural borders. In this article we present the key results from the GLOBE study of 62 cultures and apply them to a real-life case of a North European business school designing...

• A Model of the Influence of Culture on Integration Approaches and International Mergers and Acquisitions Performance. Weber, Yaakov; Tarba, Shlomo Y.; Reichel, Arie // International Studies of Management & Organization;Fall2011, Vol. 41 Issue 3, p9 

  An extensive body of literature has suggested that the influence of culture on the postmerger integration process and mergers and acquisitions (M&A) performance is critical. However, the results of empirical studies are contradictory and confusing. In fact, the combined effects of corporate...

• Not Saying No Doesn't Mean Yes. Chan, Albert; Choo, David // Conference Board Review;Sep/Oct2006, Vol. 44 Issue 5, p13 

  The article focuses on the merger and acquisition (M&A) activity between Western and Chinese companies. It cites that cultural differences in management style is the main reason for the failure of cross-border M&A. It states that language differences result to communication difficulties between...

• Courting Trouble.  // Mergers & Acquisitions: The Dealermaker's Journal;Apr2011, Vol. 46 Issue 4, p9 

  The article reports on the findings of annual "Look Before You Leap" survey of Deloitte LLP which states that tighter regulatory controls in the U.S., Canada, and Mexico have increased the risk for cross-border deals.

• Global M & A.  // Investment Dealers' Digest;2/3/2003, Vol. 69 Issue 5, p25 

  Presents information on global mergers and acquisitions as of January 30, 2003. European cross border mergers and acquisitions; U.S. buyers in Europe.

• Stemming Postmerger Defections To Preserve the Value of a Deal. Shearer, Brent // Mergers & Acquisitions: The Dealermaker's Journal;Mar2001, Vol. 36 Issue 3, p6 

  Discusses what can be done by corporations to stem post-merger defections in order to preserve the value of a merger deal. Highlight of the problem by the departures of major revenue-generators, customer liaisons and technical innovators; Ways that corporations can advance the people side of...

• Minimizing mutiny. Breidenbach, Susan // Network World;06/05/2000, Vol. 17 Issue 23, p83 

  Provides tips for keeping staff from leaving when a firm is part of a merger or acquisition. Retention bonuses; Importance of individual employees as basis for bonuses; Transition period; Selection of key members of the transition team; Clear constant communication; Employee attitudes about the...

• Effects of Cultural Assimilation in a Cross-Border M&A. Ito, Satoshi; Tamiya, Toshihiko; Fujimura, Shuzo // AIP Conference Proceedings;6/17/2010, Vol. 1247 Issue 1, p389 

  This paper examines a merger of two companies with respect to the assimilation of corporate culture differences, particularly quality culture. The study aims to clarify the root cause of declines in quality ratings from customers after a merger despite maintaining products and services as they...

• Integrating Organizational and Human Behavior Perspectives on Mergers and Acquisitions. Weber, Yaakov; Drori, Israel // International Studies of Management & Organization;Fall2011, Vol. 41 Issue 3, p76 

  This article presents a conceptual framework for investigating merger and acquisition (M&A) performance through a multistage and multilevel approach. First, human resource challenges during the integration process following a merger are explored to help explain the inconsistencies among...

Read the Article