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Corporate Culture Fit and Performance in Mergers and Acquisitions
Abstract
While cultural fit has been acknowledged to be a potentially important factor in mergers and acquisitions, the concept has been ill-defined. Hence, its relationships to other human aspects in mergers have not been rigorously examined. Further, the relationships between cultural differences and other human factors to the effectiveness of the integration process and financial performance have not been subject to rigorous research that use relatively large samples of mergers and acquisitions. The present study assesses the role of corporate cultural fit, autonomy removal, and commitment of managers to the merger in predicting effective integration between merger partners in different industry sectors. The relationships between, and role of, these variables are found to be complex; they vary across industries and have different relationships with different measures of performance.
... Dalam kajian ini, pengkaji memilih tiga model kepimpinan instruksional barat yang paling kerap dirujuk oleh akademia apabila membincangkan bidang ini (Roslizam;Jamilah & Yusof, 2019). Tiga model tersebut ialah model kepimpinan instruksional , model kepimpinan instruksional Weber (1996) dan model kepimpinan instruksional Hallinger (2000). ...
... Model kepimpinan instruksional yang dibangunkan oleh Weber (1996) lebih ringkas berbanding dengan model . Terdapat lima dimensi yang dikenal pasti dalam kerangka model kepimpinan instruksional seperti yang dtunjukkan dalam rajah 2. ...
... Rajah 2. Model kepimpinan instruksional Weber (1996 Berdasarkan rajah tersebut, dimensi yang pertama adalah berkaitan dengan menjelaskan misi sekolah. Weber menjelaskan bahawa menjelaskan misi sekolah adalah proses berterusan yang memerlukan kerjasama semua pihak termasuk pemimpin, kakitangan, guru, pelajar dan ibu bapa untuk mewujudkan matlamat yang jelas dan realistik. ...
Instructional leadership is not something foreign amongst the school leaders in Malaysia. The Malaysia Education Blueprint (Pelan Pembangunan Pendidikan Malaysia) 2013-2025 recommends that school leaders regard themselves as instructional leaders. This proves that instructional leadership is significant for the academic success of students. However, the question is whether instructional leadership in Malaysia is still relevant after four decades. This situation is exacerbated by the current disruption of the education system as a result of the industrial revolution 4.0 (IR 4.0), further indicating that this leadership style should be re-examined. However, the instructional leadership model referred to is largely based on models pioneered by Western scholars. Therefore, this study aims to explore the need to develop a model of instructional leadership that characterizes Malaysian culture to ensure its sustainability in the face of future challenges. To achieve
this objective, the study used a survey method involving 370 potential school leaders participating in
the National Professional Qualification for Educational Leaders program (NPQEL). The data was
analyzed using the Statistics Package for Social Sciences software (SPSS)Version 28.0. Interpretations
are based on percentages, mean values and standard deviations. The results show that the level of
agreement on the need to develop an instructional leadership model in the Malaysian context is high,
with an overall mean value of 4.3892, while the standard deviation is 0.78942. Based on the findings
from this study, it is clear that there is a need to develop an indigenous model of instructional
leadership. As such, this study has successfully enhanced the existing instructional leadership theory,
as well as increased sources of reference regarding educational leadership in Malaysia.
... Furthermore, from a contextual standpoint, the possible problem of cultural fit between external experienced CEO candidates and the focal firm may be overcome at a low cost [6] because CEOs may reshape and integrate with the organizational culture with effort in order to adapt to the changing environment [7]. For public firms, CEO candidates with prior experience can provide a better way for management team's decision-making [8,9]. ...
... Due to the unique skills of CEOs, companies facing CEO succession prefer to hire existing CEOs from other companies who can demonstrate their 2 Complexity qualifications and capabilities, largely due to their professional experience and partially due to their track records in the job [29]. In addition to their competencies, other significant functions and values of CEOs in commercial enterprises are also addressed in the literature [6]. According to some research, CEOs may be capable of establishing corporate culture and procedures as a result of their strong personal styles and characteristics [6,30,31]. ...
... In addition to their competencies, other significant functions and values of CEOs in commercial enterprises are also addressed in the literature [6]. According to some research, CEOs may be capable of establishing corporate culture and procedures as a result of their strong personal styles and characteristics [6,30,31]. Other studies show that the characteristics of CEOs affect their strategic choices [32], which eventually influence the performance of business firms, such as exploration or exploitation, which may lead to the difference in the short-term and long-term performance difference. ...
We examine the role of experienced CEO in the CEO succession and their contributions to the performance of focal firms. We utilize the propensity score matching with difference in differences (PSM-DID) model to evaluate to what extent experienced CEO succession affects the total factor productivity (TFP) growth. Based on the analysis of 1,675 listed manufacturing companies in China, results show that experienced CEO in succession significantly improves firms’ TFP. Our analysis demonstrates that, on average, the event of hiring an experienced CEO succession yields a 3.1% increase in TFP improvement compared with nonsuccession firms. This positive effect can be continued for three years. Furthermore, the heterogeneous effect of experienced CEO succession on TFP is shown between different categories of focal firms (i.e., high-tech versus low-tech enterprises).
... Moreover, researchers have increasingly turned their attention to sociocultural variables that have an impact on the success or failure of M&As in general and the PMI process in particular (Buono et al., 1985;Cartwright and Schoenberg, 2006;Dackert et al., 2003;Halsall, 2008;Tetenbaum, 1999;Vaara, 2000;Stahl et al., 2011;Stahl and Voigt, 2008;Khan et al., 2020;van den Steen, 2010). Hence, cultural integration and compatibility, as well as the process of acculturation, have been identified as crucial factors for understanding the outcomes of M&A (Qi et al., 2021;Larsson and Lubatkin, 2001;van den Steen, 2010;Stahl and Voigt, 2008;Cartwright and Schoenberg, 2006;Weber, 1996). Existing research generally suggests that cultural differences between the acquirer and acquired tend to produce negative effects on the PMI process, and scholars have explored the nature and characteristics of these differences on multiple cultural levels (Graebner et al., 2017). ...
... In recent decades, researchers have looked at the relevance of cultural similarities and differences between organizations for the PMI process (Buono et al., 1985;Stahl and Voigt, 2008;van den Steen, 2010;Weber, 1996). In general, existing research shows a tendency towards rather positive outcomes in cases in which acquirer and acquired are culturally relatively similar (van den Steen, 2010;Weber, 1996), while greater cultural differences tend to be related to rather negative outcomes (Stahl and Voigt, 2008), often leading to severe "cultural clashes" with potentially devastating effects (Buono et al., 1985;Veiga et al., 2000;Larsson and Lubatkin, 2001;van den Steen, 2010). ...
... In recent decades, researchers have looked at the relevance of cultural similarities and differences between organizations for the PMI process (Buono et al., 1985;Stahl and Voigt, 2008;van den Steen, 2010;Weber, 1996). In general, existing research shows a tendency towards rather positive outcomes in cases in which acquirer and acquired are culturally relatively similar (van den Steen, 2010;Weber, 1996), while greater cultural differences tend to be related to rather negative outcomes (Stahl and Voigt, 2008), often leading to severe "cultural clashes" with potentially devastating effects (Buono et al., 1985;Veiga et al., 2000;Larsson and Lubatkin, 2001;van den Steen, 2010). ...
Purpose
The literature on Mergers and Acquisitions (M&A), cultural differences between organizations have frequently been identified as one of the main challenges in the process of post-merger integration (PMI). Existing research has explored a broad variety of cultural differences in perceptions, such as those relating to expectations, norms, values and beliefs within the respective organizations, and how these affect the process and success of PMI. However, less attention has been paid to the relevance of the macro-societal context to PMI. The ambition of this article is, therefore, to advance our understanding of how macro-level societal factors define organizational cultures and affect the success of PMI.
Design/methodology/approach
We draw on social systems theory as devised by Niklas Luhmann, assuming that organizations are always embedded in the macro-level societal context of distinctive realms of social reality—such as the economy, politics, religion and the arts—that make up the so-called “function systems”. Looking at the case of the integration of a Brazilian technology start-up into a market-leading corporation, we analyze the dominant orientations towards these function systems, and the changes in these orientations over time.
Findings
The results suggest that differences in organizational culture in PMI can be partly explained by differences in orientations to the function systems. Moreover, forcing dramatic changes of orientations towards the function systems within a merged entity can severely damage its raison d'etre in the first place, potentially leading to, in some sense, an account of “culture murder”.
Originality/value
This article is unique in demonstrating that organizations are multifunctional systems whose culture is defined by the highly specific and potentially varying degrees of importance they place on individual function systems and that knowledge or neglect of these functional profiles may seriously affect the success of post-merger integration. Against this backdrop, the article presents a multifunctional profiling method that may easily translate into PMI management tools.
... Organizational culture is understood as a shared social understanding, resulting in common assumptions and worldviews of the organization's members (Weber & Camerer, 2003). It can also be defined as a system of norms, habits, assumptions and beliefs shared by members in an organization, reflecting a common perception of everyday customs and generally determining "the way things are done within an organization" (Cartwright & Cooper, 1993;Weber, 1996). Organizational culture represents the values, beliefs, and knowledge acquired through social interactions that serve to define and predict acceptable organizational behaviour (Elsass & Veiga, 1994). ...
... In line with the conceptual understanding of organizational culture, its significance and the numerous elements that shape it, the important question is how to measure it. Some studies confirm that the dominant assumptions and beliefs that characterize organizational culture can be isolated and measured with great reliability and validity if the key dimensions that shape organizational culture are identified Weber, 1996;Weber et al., 1996;Weber & Tarba, 2011). Literature offers various approaches to identifying key dimensions of organizational culture. ...
... In order to investigate the effects of acquisition on organizational culture, we measure organizational culture differences through employee perceptions of the degree of change in organizational culture after the acquisition compared to the period before the acquisition. Organizational culture differences are measured by using items adopted from Chatterjee et al. (1992) and later studies (Weber, 1996 The acquired company's performance is measured on the basis of the managers' subjective perceptions. While all respondents answered questions related to the evaluation of organizational culture differences (n=344), only the respondents holding managerial positions answered questions related to the evaluation of performance (n=43). ...
Research question: The purpose of this paper is twofold: first, to examine the effects of acquisitions on organizational culture in terms of the degree of change in certain organizational culture dimensions, and second, to examine effects of organizational culture differences on the acquired company’s performance. Motivation: Although many studies have examined the relationships among acquisitions, organizational culture and performance, especially the relationship between organizational culture differences and company performance in developed economies (Chatterjee et al., 1992; Weber & Camerer, 2003; Krishnan et al., 1997), little attention has been paid to the research into these relationships in the emerging economies. Understanding the cultural issues in the context of acquisition in the emerging economy will contribute to the literature and enable comparison of research results with results obtained in developed economies. Idea: The core idea of this paper was to empirically evaluate the relationship among acquisitions, organizational culture and performance on the example of an acquired company in the Republic of Serbia, as the emerging economy. The paper focuses on exploring the employees' perceptions of organizational culture change in the period after the acquisition, as well as managers’ perceptions of the acquired company’s performance. Data: The survey was conducted in the company operating in the Republic of Serbia which was the subject of cross-border acquisition. The sample consists of 344 respondents (managers and employees) from the acquired company. Tools: Descriptive statistical analysis, Mann-Whitney U-test and regression analysis were applied in the study. Findings: The results of the research demonstrate that innovation as a dimension of organizational culture has changed to a greatest extent. Further, the results show that there are no statistically significant differences in the ways of how managers and employees perceive changes in organizational culture. Additionally, the results of the research show that organizational cultural differences have a positive influence on performance of the acquired company. Contribution: This paper contributes to a better understanding of the significance of organizational culture changes in an acquired company in the emerging economy and formulates practical suggestions for the managers in future acquisitions.
... While this classification is readily available and not developed by individual scholars thus reducing authors' input or risk of mislabeling, this measure, too, involves a measure of judgment. For instance, Bergh (1997) considered acquisitions where the first two SIC digits of the involved firms differed unrelated; similar to Weber (1996) using two-digit overlap to indicate similarity. In contrast, Uhlenbruck, Hitt, and Semadini (2006) used a three-digit overlap to imply relatedness. ...
... The implication that the national culture influences how integration is conducted however is not clear, as other studies point to atypical integration behavior in relation to what could be expected from a cultural point of view (Pitkethly, Faulkner, & Child, 2003). And while Datta and Puia (1995) found no evidence of a positive effect from a high national cultural fit (or similarity), Weber (1996) found support that cultural differences were negatively associated with integration success. ...
... For instance, studies show managers can opt to attempt realizing synergies providing a sense of early success, or 'picking low hanging' fruit early or later . Put more broadly, the level of market or product overlap or degree of cultural similarity (Weber, 1996) do not necessarily define the speed with which integration is managed, and this matters significantly for the outcome (Bauer, King, & Matzler, 2016). Thus, under less than perfect determinism, while fit provides important insights, it is unlikely to provide a complete answer for how the M&A process evolves because it is impossible to predict in what order events take place, and hence how the process evolves. ...
... However, studies show that more than half of all M&A transactions reduce shareholders' value (e.g., Chambers and Honeycutt, 2008;King, 2004;Reed et al., 2007;Riad, 2005;Weber and Camerer, 2003). Among the reasons for this loss of value are the organizational differences between merger partners, which undermine merger performance (Buono and Bowditch, 2003;Empson, 2001;Hitt et al., 2001;Oh et al., 2014;Sarala, 2010;Weber, 1996;Weber and Camerer, 2003;Weber et al., 2014). This finding implies that firms selecting M&A as a business-growth strategy must plan and execute mergers that embrace organizational differences and consider their influence on merger performance. ...
... Firm distance denotes an inherent difference between pre-merger firms. Cultural fit (Appelbaum et al., 2013;Chatterjee et al., 1992;Datta, 1991;Weber, 1996;Weber et al., 1996), organizational fit (Datta, 1991, and strategic fit (Kim and Finkelstein, 2009;Larsson and Finkelstein, 1999) may constitute firm distance. Schein (1990) defined organizational culture as the pattern of underlying assumptions that a given group has invented, discovered, or developed for external adaptation and internal integration. ...
... The difference in task-completion times is considered a performance gap between merger partners. Weber (1996) claimed that the higher the cultural gap between acquired and acquiring firms, the more significant the difference in performance between the firms could be. ...
Purpose: This study confirms earlier findings that differences between merger and acquisition (M&A) participant firms are a hurdle for successful mergers, and shows that merger outcomes can also be affected by the post-merger integration duration (PMID).
Design/methodology/approach: An experimental research on distinct cultures developed within experimental pre-merger subject groups is employed to compare pre- and post-integration performances.
Findings: This study finds that firm distance (i.e., inherent differences between pre-merger firms) negatively influences merger success; no significant relationship between firm distance and PMID exists; and PMID is positively related to merger success. Specifically, a slower integration minimizes conflicts between merger partners, enhances trust-building, and reduces the disruption of existing resources and processes in both firms, which may benefit M&As. By contrast, a fast integration that shortens the overall integration process may discourage the combined entity from recognizing the intended synergy quickly.
Originality: While M&As may better facilitate cost-effective expansion of business offerings than building capabilities internally, they can require considerable time, preventing many firms from realizing their intended outcomes. Nevertheless, less attention has been focused on PMID and its influence on M&As. This study is the first to use experimental research to examine the effects of PMID on merger success.
Research implications: This study has important strategic implications for managers in business firms that intend to acquire external capabilities for business growth.
... In the context of China, some researchers found that Chinese enterprises can effectively acquire key technologies and market resources through technology M&As, which is of significant importance for enhancing their sustainable competitive advantage [5]. On the other hand, technology M&As involve certain risks, such as cultural differences, technological integration difficulties, and management conflicts, which may lead to poor integration after M&As, and even weaken the enterprise's sustainable competitiveness [6]. Furthermore, the impact of technology M&As on sustainable competitive advantage depends on various factors, such as transaction heterogeneity and the nature of property rights of enterprises [7]. ...
... In the field of enterprise sustainable competitiveness, researchers have explored the impact of corporate culture, technological innovation, and M&As from various perspectives. The relationship between technology M&As and sustainable competitive advantage has garnered widespread attention among scholars [6,15]. However, a consensus on the research findings has yet to be achieved. ...
In the context of global competition, enterprises are increasingly adopting technology mergers and acquisitions (M&As) as a strategic approach to enhance their sustainable competitiveness. This study investigates the impact of technology M&As on the sustainable competitiveness of enterprises, focusing on Chinese A-share listed companies from 2007 to 2021. Employing a staggered difference-in-difference (DID) model for empirical analysis, the findings reveal that technology M&As significantly boost the sustainable competitiveness of enterprises by 6.2% compared to non-technology M&A firms. Moreover, the study employs a mediation effect model to demonstrate that technology M&As contribute to improved enterprise productivity levels and market power. Heterogeneity analysis further indicates that the positive effects are more pronounced in firms with a strong ESG performance and those with lower levels of digital development. The study offers valuable insights for corporate strategic planning and policy-making, emphasizing the role of technology M&As in fostering enterprise sustainability and competitiveness.
... Cartwright, 1992). Following the same track, Weber (1996) explored that 35 percent of Mergers and Acquisitions fail in their first three years of life due to poor employee relations (Y. Weber, 1996). ...
... Following the same track, Weber (1996) explored that 35 percent of Mergers and Acquisitions fail in their first three years of life due to poor employee relations (Y. Weber, 1996). It has been reflected from several researchers that more than two-thirds of Mergers and Acquisitions failed to generate shareholder value (R. Carr, 2004) (R.N. ...
The COVID-19 forced governments worldwide to deploy contact-tracing apps as an integral part of their lockdown exit strategies. The challenge was mass users’ Adoption of tracing apps deployed. One such app was Aarogya Setu, deployed by the Indian Government. The initiative did not see an exciting response from most of the population in the initial phase. The Government had to change the approach after a while. The current study proposes a conceptual model establishing the theoretical connection among four critical factors: Innovation Resistance, Perceive Security, Perceived Risk, Privacy, and Co-production.
... Cartwright, 1992). Following the same track, Weber (1996) explored that 35 percent of Mergers and Acquisitions fail in their first three years of life due to poor employee relations (Y. Weber, 1996). ...
... Following the same track, Weber (1996) explored that 35 percent of Mergers and Acquisitions fail in their first three years of life due to poor employee relations (Y. Weber, 1996). It has been reflected from several researchers that more than two-thirds of Mergers and Acquisitions failed to generate shareholder value (R. Carr, 2004) (R.N. ...
Sentiment Analysis (SA) is an active area of study in the field of text mining. SA is the computational treatment of thoughts, emotions and literary subjectivity. This paper addresses a detailed summary of the latest update in this area. The related fields of SA (transfer learning, emotional detection, and resource building) that attracted researchers have recently been explored. The paper provides a description of the various approaches to sentiment classification and methods used for sentiment analysis. Starting from this summary, the paper introduces a classification of methods with respect to features, advantages and limitations.
... Cultural issues in an organization are complex phenomena that significantly affect the beliefs, practices, systems and procedures of employees. Corporate culture can be defined as the shared norms, habits, assumptions and beliefs of members of an organization that reflects the common perception of everyday customs and generally determines the way things operate within the organization (Cartwright and Cooper, 1993;Weber, 1996). Corporate culture can mobilize the desired organizational behaviour of members (Rodriguez and Stewart, 2017), enabling a company to maintain its competitive advantage (Kim and Chang, 2019). ...
... Corporate cultural differences were measured by employees' perceptions of the degree of change in the corporate culture after the acquisition compared with the pre-acquisition period. This research used items adapted from earlier acquisitions studies Lubatkin et al., 1999;Weber, 1996). The degree of differences in the corporate cultures of two companies was estimated on the basis of five statements relating to innovation, contact with top management team, independence in decision-making, reward orientation and performance orientation, while introducing an additional item to measure for any change in the rules of conduct and value system of the company, and if so, to what degree. ...
Purpose
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.
Design/methodology/approach
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).
Findings
Mediator analysis shows that corporate cultural differences and transformational leadership have direct and indirect impacts on acquisition performance.
Practical implications
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.
Originality/value
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.
... While most of the previous studies in this field focuses on the impact M&As has on productivity at the brokerage-level (Harrison et al., 1991;Hoskisson et al., 1994;Weber, 1996;Cummins and Xie, 2008), we examine the impact that an M&A has on individual performance. ...
... Last but not least, our study provides a good setting to examine the performance of individuals following an M&A. While most of the previous studies in this field focuses on the impact M&As has on productivity at the firm level (Harrison et al., 1991;Hoskisson et al., 1994;Weber, 1996;Cummins and Xie, 2008), we examine the impact that an M&A has on individual performance. To our knowledge, Siegel and Simons (2010) is the only study that investigates the impact that M&As have on individual worker performance, measured by worker earnings. ...
We examine whether the impact of a change in the number of analysts a brokerage firm employs has an asymmetric effect on the forecasting ability of superior and inferior analysts. Specifically, we show that following brokerage M&As only superior analysts benefit from a rise in having a larger number of peers. In addition, we find that the market does not account for the improved performance among superior analysts, and argue that this creates an opportunity for investors to capitalize on this.
... Such cultural differences complicate the integration process seriously and, therefore, require integration of the sales teams' cultures. Numerous studies have provided support for the negative influence of different cultures on merger outcomes (e.g., Appelbaum et al., 2000;Badrtalei and Bates, 2007;Cartwright and Cooper, 1993;Chatterjee et al., 1992;Datta, 1991;Lodorfos and Boateng, 2006;Shrivastava, 1986;Stahl and Voigt, 2008;Weber, 1996;Weber and Camerer, 2003) and successful change implementation (Rashid et al., 2004;Jones et al., 2005;Lucas and Kline, 2008). Therefore, success in sales team integration requires an effective change management strategy that focuses on the cultural aspect of PMI. ...
... Our experimental study finds that the employee composition in the post-integration group may play a decisive role in merger outcomes. This finding contributes to the M&A literature because earlier studies (e.g., Badrtalei and Bates, 2007;Lodorfos and Boateng, 2006;Stahl and Voigt, 2008;Weber, 1996;Weber and Camerer, 2003) mainly involves symmetrical employee compositions of post-merged firms in their investigation. Especially in a marketing context, the size effect on post-integration performance has not been discussed in depth. ...
Purpose
This study aims to test the authors’ theory that in an integrated sales team, the larger team (either from the acquiring or acquired firm) dominates the smaller team, even though it may be less competent than the smaller one, and that the level of competence of the integrated entity with the dominant but inferior larger team is bound to deteriorate.
Design/methodology/approach
The study tests the theory by conducting a laboratory experiment.
Findings
The results from the experiment show that an asymmetrical employee composition structure creates merger dominance in the post-integration group and influences the integration performance.
Research limitations/implications
Considering the lack of mergers and acquisitions research in the marketing literature, the author believes that this study contributes new information to the literature. The finding that an integrated entity with a dominant but inferior larger partner will demonstrate a resulting degeneration of competence invites empirical research for validation.
Practical implications
The integration of sales teams is central to ensuring revenue growth and driving the value that mergers promise but often fail to realize. The study findings provide some practical insights in this regard.
Originality/value
Mergers between asymmetrical partners are common phenomena. However, few studies have investigated how an unequal size of sales teams in pre-merger firms influences the effective integration of different sales teams. To fill this research gap, this study examines whether the involvement of an unequal number of salespeople from pre-merger firms in a post-merger sales team may influence its post-merger performance.
... Robertson and Carleton (2018), organizations that foster a strong employee green culture are more likely to promote a heightened understanding of environmental concerns and a shared dedication to engaging in pro-environmental behaviors among their workforce. This cultural environment functions as a catalyst, motivating employees to actively participate in environmentally responsible actions, both inside and beyond the boundaries of their professional duties, therefore making a constructive contribution to the organization's broader sustainability initiatives (Weber, 1996). Employees are more likely to engage in pro-environmental behaviors when they see their organization is cultivating a green culture (Campbell and Kish-Gephart, 2023). ...
Purpose
The primary objective of this study was to understand the impact of Corporate Social Responsibility on Employee Green Behavior, examining the mediating role played by Green Human Resource Management Practices and the moderating influence of Employee Green Culture.
Design/methodology/approach
To accomplish this, a careful research approach was taken, using a thoughtfully designed random sampling method to encompass 300 banking employees, ensuring a robust representation of the diverse workforce in the banking sector.
Findings
The empirical findings identified green human resource management practices as a pivotal mediator and employee green culture as a significant moderator. It elucidated how the strategic implementation of green human resource management practices can act as an amplifier, strengthening the positive effects of corporate social responsibility on employee green behavior. This insight underscores the strategic importance of aligning human resource practices with sustainability goals to further enhance the environmental consciousness of employees. It was revealed that the presence of a nurturing organizational culture, one that encourages and supports environmentally responsible behaviors can significantly bolster the association between corporate social responsibility and green behavior among employees.
Originality/value
These findings underscore the essential role of organizational culture as a catalyst for the successful implementation of corporate social responsibility initiatives and the cultivation of a sustainable corporate ethos. This comprehensive research underscores the profound significance of corporate social responsibility, green human resource management practices and employee green culture in fostering and promoting environmentally responsible behaviors within the banking industry. These findings hold substantial implications not only for businesses but also for policymakers.
... Managing the culture within the organization during change can be considered relevant element for the change to occur advantageously. In this vein, the most fundamental role in shaping and transmitting culture falls on leaders (Weber, 1996). As reported by the American Management Association (1994), the success of change depends on the leadership role and the values and communication within the organization. ...
... This perspective might contradict the one proposed by Roth et al. (2022), who claim that implementations in networks of organizations should be managed and studied at a higher level (which we understand as tactical or strategic level), but we observed evidence suggesting that, even in networks, it is relevant to integrate work at higher and lower level, as both are interlinked. We adopt a perspective in line with the perspective used in the operations management (Hanson et al., 2011) and in the new product development (Sosa et al., 2004) literatures, where alignment is analysed in relation to the structures and processes of organizations, and not in relation to their strategies (Henderson and Venkatraman, 1993) or cultures (Rivera and Rogers, 2006;Weber, 1996). Therefore, at an operational or operational management level, it provides implementation managers an inside view of the processes they encounter when implementing new technologies, assisting them in better understanding what they may face, predicting what may happen at each step of the implementation, and being aware of what they should focus on when managing it, with the goal of facilitating a smooth integration of a new technology in an organization (Shet and Pereira, 2021). ...
... Przy założeniu, że rola przywództwa jest wiodąca w kształtowaniu i przekazywaniu kultury organizacyjnej [Weber, 1996], można stwierdzić, że ma ono również wpływ na sposób wprowadzenia i zarządzania zmianą w organizacji publicznej. Dla przykładu J.T. Hennessy [1998] stwierdza, że kompetencje posiadane przez liderów są skorelowane ze stopniem zmian kulturowych zachodzących w organizacjach publicznych. ...
... Finally, these decisions are made in an environment dynamic marketplaces. As a result, there is no guarantee that the best of decisions will prove to be profitable, as is seen with failed mergers and acquisitions which may lead to significant financial losses (Weber 1996). Accordingly, it is entirely appropriate that these senior corporate decisionmakers be excused from liability for decisions which do not turn out as planned. ...
... Przy założeniu, że rola przywództwa jest wiodąca w kształtowaniu i przekazywaniu kultury organizacyjnej [Weber, 1996], można stwierdzić, że ma ono również wpływ na sposób wprowadzenia i zarządzania zmianą w organizacji publicznej. Dla przykładu J.T. Hennessy [1998] stwierdza, że kompetencje posiadane przez liderów są skorelowane ze stopniem zmian kulturowych zachodzących w organizacjach publicznych. ...
... Performance of the post-merger integration process is defined as "the degree to which the targeted level of integration between the two organizations has been achieved across all of its task dimensions in a satisfactory manner" (Zollo and Meier, 2008, p. 56). As many as four dimensions of integration performance were identified: alignment of the operations and systems (such as control systems, conversion of IT systems) (Datta, 1991;Weber, 1996), integration of human resource programs and policies (salary and benefit programs) (Buono et al., 1985), impact on existing clients (Bekier and Shelton, 2002), and transfer of capabilities across the organizational boundaries (Capron, 1999). Poor handling of integration along the four dimensions has been linked to employees leaving the merged organization. ...
This paper incorporates insights from organizational identity and identification, social network research and post-merger integration to explore factors influencing employees' identification with a merged nonprofit organization. We propose that nonprofit employees' identification with the merged nonprofit organization is associated with their network size, relational heterogeneity, and perceived effectiveness of integration processes. Empirical results suggest that employees with larger mentoring and socioemotional support networks exhibit strong post-merger identification. Relational heterogeneity within the workflow network has an inverted U-shape relationship with post-merger identification. Employees' perceived effectiveness of integration processes significantly influences their sense of identity with the new organization. Implications for better managing post-merger identification are discussed.
... Denison and Ko have developed a framework for cultural due diligence to address the limitations of existing approaches (Denison, D.,R., and Ko, I, 2016). It has been estimated that 20-70% of mergers and acquisitions fail depending on how success is defined (Appelbaum, Gandell, Yortis & Jobin, 2000;Marks, 1988;Weber, 1996). One of the most common themes to explain the high failure rate is the compatibility of organizational cultures and the way how these dynamics are managed in the cultural integration (Appelbaum et al., 2000;Mirvis and Marks, 1992). ...
The purpose of the study was to increase understanding of the reasons for success and failure of post-acquisition integration through a case study. The specific purpose of the study was to investigate the challenges of change leadership in the post-acquisition integration of Company A and Company B. The subject of the study was a case where, at the end of 2016, an international service company A, operating in Finland, acquired a Finnish company B in the same field. Case company A is one of the world's leading private employers providing HR services and operating in many countries. Case company A Finland Oy is the subsidiary of Case Company A's Global group and has offices in several cities in Finland. Case Company B, operating in HR services as well, was formed about 10 years ago and operates also in several cities in Finland. Research Questions The main research questions were: 1. what common challenges companies face in the post-acquisition integration phase, concentrating on acculturation, the cultural integration phase and change resistance? 2. what role does the management of cultural integration and change processes play in the success of these transactions? Strategy The research strategy was to conduct the research as a grounded theory type, i.e., to first collect in-depth research material free of all prior theories and, only after analyzing the results, to compare the research results with previous research results and theories in the discussion section.
... Employees who have a feeling of declining status of their respective organization are more insecured and have decreased morale with a strong urge to quit the job (Greenhalgh, 1983). It has been suggested that individual attitude and behaviors are the key root issues making the organizational changes a success (Goodman and Dean, 1982 and Bowditch, 1989;Cartwright & Cooper, 1993b;Covin et al., 1996;Marks, 1982;Napier, 1989;Weber, 1996). ...
... In M&A literature the link between integration, synergies, and risk of an M&A operation is still not clear (Almor et al. 2009). In fact, many decisions are made in this phase, such as human capital management (Cartwright and Cooper 1990;Chatain and Meyer-Doyle 2017), corporate and national cultures (Weber, 1996), and the level of integration (Liu and Woywode 2013). ...
Although the business strategies of mergers and acquisitions (M&As) are investigated theoretically and practically, their diffusion and features in the Middle East and North Africa (MENA) region are not clearly described in the literature. This is in particular due to the recent transformation that member countries have been going through since the financial crisis of 2008 and the Arab Spring. Through shareholder maximization theory, agency theory, and the resource-based view we identified the reasons and characteristics of M&As in the Middle East and North Africa regions. Following a systematic literature review methodology, we identified 37 articles related to M&A in MENA countries published in peer-reviewed journals and reported in CABS ranking (Chartered Association of Business Schools). Based on this analysis, we map the extant literature on the topic and present an integrative framework of these features for future researchers to further explore and expand the boundaries of the domain.
... Corporate cultural differences were measured by items adapted from surveys developed by Chatterjee et al. (1992), Lubatkin et al. (1999), and Weber (1996). The respondents were asked to indicate the degree of change in the acquired company's corporate culture after the acquisition. ...
The purpose of this paper is to examine factors influencing employee
reactions to changes brought about by crossborder acquisitions. The research
was conducted in a company operating in Serbia’s retail sector that was
acquired by a Belgian multinational company. The data were collected from
344 respondents. Measures of central tendency, the Mann-Whitney U test, and
regression analysis were used to test the research hypotheses. The research
results show that employee reactions to changes brought by cross-border
acquisition were generally positive. The study show that corporate cultural
differences between the acquiring company and the acquired company and the
support of transformational leaders resulted in employees reacting
positively to the changes. The study attempts to improve understanding of
employee reactions during the process of change occurring as a result of
cross-border acquisition. Additionally, this study has practical
implications, as it points to how the appropriate management of human
resources contributes to positive employee reactions.
... The process is far from simple and involves high levels of complexity [79], including factors such as the integration of cultures, where differences may generate anxiety, distrust, and feelings of hostility [80]. The strategic and financial fit, as well as the proper management of the change, also influence an operation's success [81]. These factors have an impact on a firm's engagement in M&A processes while others, such as the nature and quality of a country's political, economic, and legal policies and institutions, may help to explain its choice of one country over another [15]. ...
The sharing economy is changing the way customers perceive businesses and making traditional companies face new challenges. Many outmoded companies have decided to embrace these changes either by creating their own sharing platforms or by acquiring an already existing one. This paper is an initial attempt to shed light on the reasons behind mergers and acquisitions involving at least one sharing platform. We conduct an in-depth analysis of M&As over the period 2012–2019 with a sample of 108 operations, covering countries all around the world. Our analysis reveals how important and commonplace these operations are becoming, and how widely spread sharing platforms are. The paper also shows how traditional companies are dealing with these new competitors and how sharing companies need the specific knowledge provided by established companies with outmoded approaches.
... One study found that 30% of IAs conducted by British companies failed (Sundarsanan, 1995). Other studies have found that 50-70% of IAs do not reach their financial expectations, or are a financial failure (Weber, 1996;Jackson, 1998;McKinsey, 1998;Beard, 1999;Markides & Oyon, 1998). ...
This paper examines activities performed by parent companies of IJVs and acquiring companies of IAs associated with the pre-incorporation and post-incorporation phases of both IJVs and IAs. The examination is based on the assumption that because these two organizational forms have different structures, as evidenced by the generic differences between them, appropriate activities for managing the pre-and post-incorporation phases of these FDI types will differ. As a result of this examination, the paper suggests that critical components of each stage for IJVs differ significantly from those of IAs, and that effectiveness of both IJVs and IAs is consequently related to differentiating successfully between the pre-and post-incorporation stages of these two business forms. #
... The staff of an institution or organization is given in-house training rather than workers outside it (Crumpton, 2011). It may be offered willingly and freely by process: actions, drills and group discussions (Weber, 1996). The faculty members are going to be thinking, working, processing, doing, lots of interaction, moving around, creating, etc. ...
... These types of in-house trainings enhance the academic and applied knowledge and skills of instructional leaders. The workshop, seminar and conference get faulty members completely involved in the enhancement process: actions, drills and group discussions (Weber, 1996). The faculty members are going to be thinking, working, processing, doing, lots of interaction, moving around, creating, etc. ...
... Nevertheless, when the conflict is solved by means of a well-designed integrating process, a firm succeeds in absorbing and exploiting unknown knowledge, and thus the benefit from CBMAs is enormous [57][58][59][60]. To eliminate the vulnerability coming from the knowledge-transfer process, acquiring firms should establish their method of absorbing and creating value from the target firm's knowledge [25,28]. ...
In this study, we underline the importance of the relationship between absorptive capacity and an acquiring firm's post-merger performance following the acquisition of a target firm's knowledge through cross-border mergers and acquisitions (CBMAs). We analyzed CBMAs between developed countries to highlight how realized absorptive capacity plays a crucial part in a firm's achievement of CBMA sustainability. Using United States CBMA transactions with other developed countries during 2000-2014, our findings suggest that an acquiring firm's greater absorptive capacity leads to better post-merger performance. More interestingly, compared to for domestic M&As, the direct effect between absorptive capacity and post-merger performance was found to be more positively related in CBMA transactions, even when we applied propensity-score matching (PSM) and Heckman's selection model to the same estimation. In addition, we introduce four moderating variables that could either intensify or lessen a firm's effort to seek external knowledge for organizational growth. In terms of an acquiring firm's strategic behavior, we find that paying in cash and past CBMA experiences positively influence a firm's post-merger performance. For a target firm's knowledge assets, we show that when a target firm possesses more strategic assets, they reinforce the acquiring firm's post-merger performance, and when the target firm is in a high-tech industry, the acquiring firm's post-merger performance is weakened. Our study contributes to the CBMA literature by incorporating the concept of a knowledge-based view and by empirically testing the different effects of absorptive capacity between domestic M&A and CBMA and how both strategic behavior and a target firm's knowledge assets affect a firm's post-merger performance related to CBMA sustainability.
... It can also have a negative impact on the company's operations (Naz and Nasim, 2015;Adhikari, 2016). Similarly, the tension created can lead to failures (Weber, 1996) and internal conflicts (Newton, 2015). Furthermore, M&As can create anxiety, tension, frustration and anger among employees with managerial positions and result in turnover (Erickson, 2015;Bansal, 2015;Adhikari, 2016). ...
Although mergers and acquisitions are important for an organisation's future growth, they often result in high employee turnover. Employee retention though is an essential prerequisite for achieving the projected benefits for the newly formed organisation. The paper draws empirical evidence from a study that explored critical factors in retaining key employees, since their concerns and problems often lead to voluntary turnover and merger failure. The study utilises qualitative data, collected through in-depth semi-structured interviews and focus group discussions with 55 participants from the wider environment of the Cooperative financial services sector in Cyprus. At the time of the study, the sector was undergoing dramatic changes, eventually leading to a number of previously independent Cooperative credit institutions coming under state control and ownership. The number of these institutions was reduced from more than 90 to just 18, which were subsequently merged into the Cyprus Cooperative Central Bank, which itself was sold in 2019 to a larger banking organisation.
... According to Clark (1998), entrepreneurial universities are like market-based companies, whose survival is based on market responsiveness and adaptability. Globalization pressure also leads to the creation of Virtual Universities and Net Universities (Weber, 1996). There are different degrees of being virtual or netbased universities. ...
... Organizational culture is usually understood as mutual understanding that results in mutual assumptions and worldview of organization members (Weber & Camerer, 2003). It can be defined as the system of norms, habits, assumptions and beliefs that organization members share, and reflects mutual perception of everyday routine and generally determines "the manner in which things are done within organization" (Weber, 1996). Corporate culture represents values, beliefs and knowledge acquired through social interactions that serve for the prediction of acceptable organizational behavior. ...
The purpose of this paper is to examine university mergers, their motives, problems and challenges that emerge during process implementation, as well as their effects. Research results have shown that rarely there is one motive for merging insititutions of higher education, but there are, most often, multiple motives. Furthermore, research results have shown that the efficiency of university mergers is different and that more successful mergers among institutions of different sizes, as well as among complementary institutions. Additionaly, research results have shown that the most important challenge related to the implementation of university mergers refers to the conservatism of traditional academic cultures and the existence of strong employee resistance toward change. Finally, research results have shown that the key factors of the success of university mergers are successful management of human resources, leadership quality, communication on important aspects of changes, achieving cultural compliance of integrated institutions.
... Firm performance in the global market is influenced by corporate governance (Martin & McConnell, 1991;Parrino & Harris, 1999;Shalender & Yadav, 2019), prior experience (Han et al., 2018), cultural differences, investment decisions, and information disclosure (Ahammad et al., 2016;Inkpen, 2000;(Morosini, Shane, & Singh, 1998). For example, organizations may face disputes between employees because of inequality in corporate culture (Gupta & Gupta, 2019) and national culture (Appiah-Adu & Blankson, 1998; Ojala & Tyrväinen, 2007;Weber, 1996). ...
This study investigates the factors affecting Bharti Airtel's cross‐border postacquisition performance in an African market. This study describes the relationships among various factors such as technical capability, affiliated firm's absorptive capacity, and organizational learning capabilities, which determine the successful operations of the Zain acquisition deal in South Africa. This paper adopts a qualitative approach to identify factors that influence the postacquisition performance. Seven factors are identified based on the literature. Consequently, it has become a necessity to encapsulate these factors in suitable proportions. In this study, we have developed a total interpretive structural modeling (TISM) to analyze the postacquisition performance of Bharti Airtel in South Africa. Our research has highlighted six dynamic factors (organizational learning capability, knowledge management, technology capability, technology relatedness, acquirer's absorptive capacity, and national culture difference) that affect the firm's postacquisition performance. The interpretive structural model (ISM) and total interpretive structural model for postacquisition performance are built‐up. The developed TISM will support academics and practitioners to develop their understanding of acquisition performance of parent companies in the context of telecom business in the South African market.
Due to the expected Ethiopian government's economic reforms, liberalization, and deregulation initiatives that might follow the country's continued effort to join the WTO, industry shocks and bandwagon effects may trigger merger and acquisition waves in the banking sector. The current study analyzes the potential strategic and technical efficiency gains from potential domestic bank merger and acquisition (M&A) initiatives in Ethiopia. All the seventeen domestic banks operating in the country from 2013-2017 are part of the study. Input-oriented CRS-DEA and Bootstrapped Panel Tobit regression models were employed to analyze the overall scale efficiency gains among 664 hypothetical merger possibilities. Ownership structure and bank size were used to set context variables. The state-owned banks followed by medium, small, and large private banks scored the highest efficiency during the study period. The results indicate large private banks are the preferred banks offering the highest efficiency gains from M&A. Most of the M&A efficiency gains will be outcomes of a learning effect rather than a pure merger signposting little or no resource and service complementarity among merging units. Moreover, only private banks have an opportunity for a full-scale merger. We conclude no clear relationship between bank size and efficiency performance; the scale effect disfavors M&A among merging units, and the internal organizational theory largely explains the potential domestic bank M&A motives.
Mergers and acquisitions have gained huge importance over the years. Despite huge investments, mergers and acquisitions have failed to achieve desired results. The sole purpose of this study is to explore the aftermath of mergers and acquisitions in Pakistan from the employee perspective. Existing literature suggests that there are more failures than successes in mergers and acquisitions, the reason being the poor implementation of such events. Mergers and acquisitions have consequences, and these consequences are subject to the nature and behavior of the individuals. This study was carried out to explore mergers and acquisitions from an employee perspective and what issues they come to face. With the interpretivist approach and qualitative strategy, the phenomenological methodology was implied to understand the issues of the employees from their lived experiences. Interviews were collected with snowball sampling from the employees who have experienced this transformation. For triangulation of the data, focus group discussions were also conducted among the participants. Moreover, the interview transcripts were validated with a member checking approach. After performing axial coding, constant comparison of the collected data was used, and themes and their relations were developed. Results unearthed several issues employees face, some are job-related, and others are personal life issues. In the former category, employees face the problem of job security, lost experience, communication gap, while in the latter they experience a disturbance in their social circles and personality issues such as stress and anxiety. These issues ultimately culminate into a negative influence on their growth.
Many organizations rely on formal management control systems that align employee values with organizational values (i.e., culture-fit) to shape organizational culture. Using proprietary data from a highly-decentralized organization, I examine the employee performance consequences of adopting a formal culture-fit measurement system in employee selection. I exploit the staggered feature of the adoption of the system, and find that employees selected with the system perform significantly better than those without the system. However, the performance consequences of adopting the culture-fit measurement system exhibit significant variation depending on (1) alignment of existing local culture and organizational values, and (2) noise in the measurement of culture-fit due to applicants’ gaming behavior. Taken together, this study implies that the adoption of a formal culture-fit measurement system can potentially alleviate difficulties in instilling organizational values and highlights the conditions under which such a system can be more effective in facilitating the diffusion of organizational culture.
While research on mergers and acquisitions (M&A) capabilities is accelerating, our understanding of their antecedents and performance implications still remains rather fragmented. Previous research has outlined the importance of learning for building M&A capabilities, but no work has attempted to summarize previous empirical findings regarding different learning mechanisms and their impacts on M&A performance. Mainly drawing upon organizational learning theory and the dynamic capabilities perspective, this study consolidates research on the relationship between different learning mechanisms, post-acquisition integration strategies, and M&A performance. Using meta-analytical techniques, our study shows that the capability-building mechanism relying on deliberate investments in learning tends to be more effective than the capability mechanism based on mere experience accumulation. In addition, our findings indicate that a higher degree of integration is associated with enhanced M&A performance among firms with more developed experiential learning, highlighting the need to explore mediating effects of integration strategy choices on the experiential learning-performance relationship.
Advisory organizations on cross-border mergers and acquisition deals performed as advisory governance can fill the distance between the formal institutional environment of host and home economies. This study examined the formal institutional distance between emerging and developed economies and their role in M&A initial contract ineffectiveness by expanding the phenomena of the pre-completion stage of M&A-contracts. We examine our key questions using data of 832 cross-border M&A-contracts of developed economies’ firms with emerging economies’ firms in the international business high-technology industry from 1984-2011. We find that formal institution distance explains part of the variation in the ineffectiveness of M&A-contracts. Further the gain from the external capabilities provided by advisory organizations helps in reducing the effect of institutional distance on the M&A-contract ineffectiveness.
O objetivo deste estudo concentra-se na identificação de como os gestores (lideranças) atuaram na gestão de mudanças decorrente de um alinhamento estratégico que resultou na fusão de diversos setores de uma organização do poder público brasileiro. Foi realizada uma investigação empírica – com entrevistas semiestruturadas e aplicação de questionário – e comparados os resultados com a literatura existente a fim de observar como os gestores conduziram o processo de mudança organizacional. Dentre os achados figura a percepção de que a literatura científica serve como um bom parâmetro para o desenvolvimento de estudos preventivos que possam minimizar impactos em processos de gestões de mudanças. Este estudo contribui para a abordagem sobre a atuação de lideranças em gestões de mudança e em processos que demandem fusões setoriais, no sentido de que integra a literatura sobre organizações dos setores público e privado, enriquecendo a literatura e ampliando as possibilidades de observações sobre o tema. Fornece evidências empíricas sobre a atuação das lideranças nos níveis estratégico, tático e operacional, no âmbito da administração pública, colaborando para a redução de complexidades em processos similares por vir.
We investigate the predictive power of corporate social culture, as measured by corporate social responsibility (CSR) intensity, on shareholder wealth when mergers and acquisitions (M&As) are carried out by managers with different traits. We find acquiring firms with talented managers are more inclined to engage in CSR activities to shape corporate social culture, thereby realizing larger short- and long-term gains than their counterparts. We also document that acquiring firms with higher levels of CSR commitment led by talented managers tend to acquire targets of similar corporate social culture and experience significantly positive post-merger returns, suggesting that corporate cultural similarity constitutes an important source of M&A synergies. These findings suggest that corporate culture built through stakeholder relations acts as a differentiation strategy that pays off when skilled managers engage in M&As, which typically prompt information asymmetries between managers and outsiders.
Value in mergers and acquisitions (M&A) derives from the synergistic combination of an acquirer and a target. We advance the existing conceptualization of synergies in three ways. First, we develop a theoretically-motivated, parsimonious typology of five distinct sources of synergy based on two underlying dimensions: the level of analysis at which valuable activities occur and the orientation by which those activities are governed. The typology uncovers three novel synergy sources (relational, network, and non-market) arising from acquisition-induced changes in firms’ external cooperative environments, and classifies two other well-known synergies (internal and market power). Second, we introduce the concept of synergy lifecycles to explore how the timing of initial realization and the duration of gains vary across the five synergies, based on differences in the post-merger integration required and in the control the acquirer has over the assets and activities combined by the merger. Third, we consider how the synergy types interact, yielding co-synergies when they complement each other and dis-synergies when they substitute for one other. This enables us to expand the traditional conceptualization of the total value created by M&A as the sum of each of the synergy types, their co-synergies, and their dis-synergies.
While cross‐border acquisitions (CBAs) by emerging market firms (EMFs) have grown rapidly in recent years, many have failed to bring the acquisitions to completion. Compared with acquisitions initiated by acquirers from developed economies, little is known about the possible determinants of completion or abandonment of CBAs conducted by EMFs. This paper investigates what contributes to the successful completion of CBAs by EMFs. Based on data of 637 announced CBAs by Chinese firms during 2000–2017, we find that investing firms’ self‐learning experience from previous acquisitions can significantly increase the completion rate of subsequent related CBAs, while their industrial spillover experience helps raise the completion rate of unrelated CBAs. Our findings also show that the value of acquisition experience is significant only when the target firm is domiciled in countries with comparable level of institutional quality. Our results provide new insights into the complexity of the global M&A market and lessons for EMFs intending to conduct CBAs in the future.
To establish coaching and mentoring needs in mergers and acquisitions (M&A) and how it affects organizations variables: transform, communications, management, customs and anxiety. This paper compiles scholarly narrative with meticulous orientation to the most frequent trouble organization encounter throughout M&A execution. Coaching and mentoring are essential for booming M&A execution and implementation are acknowledged: management, communication and faith, managerial customs, and stress. This paper provide organization insight on to get ready for M&A to plan a coaching and mentoring method in order to reach the likely post M&A gain and opportunity with a time bound method. It is essential that coaching and mentoring help to make better communication and leadership for overcoming challenges in M&A.
Chinese cross-border mergers and acquisitions (M&As) display several unique properties in relation to the ways in which their international business operations are organised and managed. Their seemingly puzzling ‘light-touch’ integration approach can be significantly understood from a strategic ambidexterity perspective: on the one hand, the ‘light-touch’ enables the exploitation of the targets’ existing knowledge bases; on the other hand, elements of the ‘light-touch’ facilitate the exploration of the new knowledge arising from the collaboration between targets and acquirers. However, an important theoretical gap remains: why do Chinese companies deploy such a strategic ambidexterity approach in their post-acquisition integrations? This paper aims to fill this gap by proposing Mid-View thinking as a micro-foundation of strategic ambidexterity in integration management from a cultural and philosophical perspective. To illuminate our conceptualization and argument, we conducted qualitative in-depth interviews with CEOs/high-level managers of acquired German companies. Communication approach and organizational control—as two critical aspects in integration management—reveal how Mid-View thinking can serve as a micro-foundation of strategic ambidexterity. We conclude this paper by presenting its theoretical contributions, managerial implications, and future research directions.
The notion of “corporate culture” has received widespread attention in the past several years. But what is meant by the term and why should managers be concerned with it? Culture can be thought of as a mechanism for social control. As such, culture is important for both the implementation of strategy and as a mechanism for generating commitment among organizational members. Based on a comparison of strong culture organizations, ranging from cults and religious organizations to strong culture firms, this article argues that culture and commitment result from: systems of participation that rely on processes of incremental commitment; management as symbolic action that helps employees interpret their reasons for working; strong and consistent cues from fellow workers that focus attention and shape attitudes and behavior; and comprehensive reward systems that use recognition and approval. These techniques characterize “strong culture” organizations. © 1989, The Regents of the University of California. All rights reserved.
Executives of 56 acquiring organizations participated in policy-capturing research that examined how the task, cultural, and political characteristics of acquisitions influence decisions about levels of integration. Although task-related characteristics entered most heavily into managers' decision models, cultural and political factors were also important. These results suggest that an understanding of acquisition integration is best achieved by viewing integration design decisions through multiple theoretical lenses. Furthermore, although industry and acquisition experience explained some variation in integration decision policies, results suggest that other individual or organization-level factors are also at work.
Studied changes across time in measures of organizational commitment and job satisfaction as each related to subsequent turnover among 60 recently employed psychiatric technician trainees. A longitudinal study across a 101/2-mo period was conducted, with attitude measures (Organizational Commitment Questionnaire and Job Descriptive Index) collected at 4 points in time. Results of a discriminant analysis indicate that significant relationships existed between certain attitudes held by employees and turnover. Relationships between attitudes and turnover were found in the last 2 time periods only, suggesting that such relationships are strongest at points in time closest to when an individual leaves the organization. Organizational commitment discriminated better between stayers and leavers than did the various components of job satisfaction. (36 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
An extended case study of a recent merger between two mutual savings banks is studied from the perspective of organizational culture. Data on organizational culture and organizational climate are analyzed from pre- and post-merger interviews, observations, archival information, and survey questionnaires. Results suggest that even within the same industry, there are major difficulties in trying to merge two different though viable organizational cultures.
Based on a questionnaire survey of 279 business and government managers, this study sheds light on two questions: (a) which organizational experiences have the greatest impact on managers' organizational commitment attitudes and (b) how does the significance of such experience vary with organizational tenure, particularly at early career stages? The results identify several commitment-relevant experiences and suggest that the influence potential of particular experiences varies significantly with tenure.
The relationship between people's membership in social-interaction groups and the meanings they attach to organizational events was investigated. It was hypothesized that people who interacted together would interpret organizational events similarly and that different interaction groups would interpret organizational events differently. Interview and questionnaire data were collected from 64 members of an accounting firm. The data were analyzed with network analysis and multi dimensional scaling. The results provide evidence that people who interacted with each other had similar interpretations of organizational events and that members of different interaction groups attached qualitatively different meanings to similar organizational events. Methodological, theoretical, and practical implications of the results are discussed. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Reviews cross-cultural research on micro-organizational behavior conducted during the past decade and introduces a conceptual framework for classifying the studies. It is argued that much of the current research fails to specify "culture" adequately, and because the cultures studied are often "targets of opportunity," pancultural theories of organizational behavior have not emerged. Methodologically, although an improvement over the literature reviewed in K. H. Roberts (1970) is evident, there remains an inadequate concern for the culture-specific nature of behavior, for alternative hypotheses that might also explain findings, and for achieving proper equivalence in translation. It is proposed that future researchers examine more carefully their rationale for doing cross-cultural research, commit themselves to theory, adopt a more rigorous concern for suitable methodologies, and form multicultural teams to achieve these ends. (4 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
To understand better the differences in power between subunits, this paper examines the relationship between perceived departmental power and the extent to which departments appear to share important organizational values with top management. Critical contingency perspectives on intraorganizational power are used as a catalyst for exploring similarity of organizational values as an additional determinant of power. Interview and survey data from a quick-service restaurant chain and a robotics company are used to provide support for the role of perceived similarity in values for determining power. Perceived value congruity between department members and top managers, examined from the perspectives of both groups, was found to account for unique variance in departmental power when controlling for the effects of critical contingencies. An objective measure of the similarity of values between department members and top managers, however, was unrelated to departmental power.
A need-satisfaction theoretical model has been ubiquitous in studies and writings on job attitudes and, by extension, motivation, job design, and other organizational performance improvement issues. An examination of such need models indicates that they are frequently formulated so as to be almost impossible to refute, and the research testing them has been beset with consistency and priming artifacts. Furthermore, available empirical data fails to support many of the crucial elements of need-satisfaction theories. An examination of the components of need-satisfaction models-needs, job characteristics, and job attitudes-indicates that all three have been incompletely considered. Need models may have persisted in part because of perceptual biases, their consistency with other theories of rational choice behavior, and because of what they seem to imply about human behavior. The models appear to deny, however, that people have the capacity to provide their own satisfactions by cognitively reconstructing situations.
Questionnaire data from eighty-seven middle-management personnel in a bank planning a merger with a larger bank were analyzed. Attitudes toward the merger tended to be unfavorable, although they ranged from very favorable to very unfavorable. Favorable attitudes were related to older age, lack of previous success in the organization, high morale, and high F-scale scores (authoritarianism). Unfavorable attitudes toward the merger seemed to be principally associated with: younger age, a pattern of success in the organization, low current morale, and low authoritarianism.
The prevailing theory of mergers is that firms emphasize considerations of “strategic fit” in discussions prior to merger activity, and neglect considerations of “organizational fit”. The result is that immediately following a merger dysfunctional organizational behaviours occur. The number of empirical studies of mergers, however, is relatively modest and there are few case studies of the merger process. The present paper studies the merger involving two large accounting firms, over a period of four years. The unique features of accounting firms—in particular, their organization as professional partnerships—and of the accounting industry, make the case study an appropriate “tough” test of the general theory. Accounting firms are likely to take account of organizational fit in merger discussions.
The case study rehearses the careful attention to issues of strategic and organizational fit (contrary to the general theory) but also maps the unfolding behavioural problems that followed formal merger. Interestingly, the specific difficulties observed in previous studies were less salient in the present case: problems and difficulties were of a kind peculiar to the type of organization, which suggests that theories of mergers should be sensitive to the context and setting of merger activity.
The paper concludes by elaborating elements of a more systematic model of the merger process. These elements include the difference between mergers and acquisitions, the structure of governance, organizational capacity, sector cohesiveness and technology.
Applied behavioral scientists spend most of their consulting time with single groups or organizations dealing with matters of communications, problem solving, organizational structure, interpersonal relations, and so forth. This paper focuses on the problems which develop when two organizations are joined to create one functioning unit.
There is a small but growing body of literature' that is concerned with merging organizations. Although the major emphasis of what is written is on financial matters, Kitching (1967) focuses on matters of management and organization, albeit not in great detail. His data indicated that in 8i per cent of the merger "failures" reported, reporting relationships were unclear and there was a tendency to change them often. He also suggests the necessity of having competent "managers of change" and of setting up unambiguous reporting relationships in the newly formed organizational structure.
The financial and economic components of mergers are part of a total mix of problems that includes such things as expectations about norm development, role changes, leadership style, decision-making processes, and goal orientation. It is with these factors that this paper is concerned. The format is that of a case study of a merger situation in which the writers were involved.
sec> Survey researchers usually assume that retrospective data become less accurate with the passage of time between event and interview. Available research focuses on retrospective behavioral data, although the findings may be assumed to generalize to retrospective attitudinal data. The present study tests the assumption that attitudes in the past are recalled less accurately over time and finds it unwarranted. Data from a national sample survey show that people who recall attitudinal information about a bureaucratic encounter which occurred 10 or more years in the past generally showed the same pattern of relationships among aspects of the encounter as did people who had contacted a government agency only two or three months prior to the interview. </sec
Prior attempts to explain the departure rates of the executives of acquired firms, primarily through strategic and economic logics, have yielded limited results. This study drew on the concept of relative standing, or local social status, to explain why some acquired executives depart. Using a dynamic modeling methodology to study 430 executives in 97 acquired firms, we present evidence to support this new perspective on executive departure. Implications and directions for future research on postacquisition outcomes are discussed.
Studies of organizational culture often focus on discrete cultural forms and fail to place phenomena studied within an overarching conception of culture. Overlap and confusion in terminology occur across studies. To alleviate these problems, this paper offers distinguishing definitions and advocates studying rites and ceremonials, which consolidate multiple cultural forms. The paper also presents, illustrates, and discusses a typology of rites and ceremonials and examines the implications of cultural studies for research and practice.
The prospect of increasing profitability and market share by acquisition or merger has continued to exercise a more immediate and seductive appeal to organizations than a reliance on organic growth alone, despite the seemingly high risks attached. The human aspects of merger and acquisition and the impact such a major change event has on employee health and well being has received relatively little research attention. This article reports on a recent study of middle managers (n = 157) involved in the merger of two U.K. Building Societies. Post-merger measures of mental health suggest merger to be a stressful life event, even when there is a high degree of cultural compatibility between the partnering organizations.
This article argues that chief executive officers and staff planners must more explicitly integrate ‘change planning’ with the other dimensions of merger planning (e.g. financial, marketing) if implementation is to be successful. Based on recent research, guidelines for gaining acceptance of merger are presented and discussed. The need to distinguish between gaining initial acceptance, on the one hand, and continuing acceptance on the other is stressed, and the guidelines carry forward that distinction. Such guidelines should be integrated into the overall strategic plan developed for merger.
This paper describes and critiques organizational culture studies done in industrial settings, some of which were based on anthropological paradigms, including the structural-functional and configurationist holistic paradigms. Most failed to explore multiple "native" views. In this paper, a multicultural model is proposed for large organizations, and problems of "cross-cultural" contact are described. Native-view paradigms from anthropology, especially ethnoscience ethnography, are recommended for exploring multiple perspectives in detail. An illustration from a recent study of "Silicon Valley" technical professionals' "native" views is presented to demonstrate how ethnoscience methods, in particular, can be applied to the task of studying culture.
While mergers may be a good way to grow rapidly, can one sustain growth and performance for long periods? The answer lies in how well one integrates the business after the merger.
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This paper examines the significance of the concept of culture for organizational analysis. The intersection of culture theory and organization theory is evident in five current research themes: comparative management, corporate culture, organizational cognition, organizational symbolism, and unconscious processes and organization. Researchers pursue these themes for different purposes and their work is based on different assumptions about the nature of culture and organization. The task of evaluating the power and limitations of the concept of culture must be conducted within this assumptive context. This review demonstrates that the concept of culture takes organization analysis in several different and promising directions.
This paper proposes an anthropology-based theoretical model describing the impact of top management culture clash on the commitment of the acquired team to the new organization and on its cooperation with the acquiring team. It suggests that three factors are influential, namely the degree of cultural differences, the nature of the contact between the teams, and the intended level of integration between the companies. The paper generates numerous propositions for predicting the impact of the culture clash. It also offers suggestions for further theoretical and empirical study, and presents some of the model's practical implications.
This paper presents the results of a study on organizational cultures in twenty units from ten different organizations in Denmark and the Netherlands. Data came from in-depth interviews of selected informants and a questionnaire survey of a stratified random sample of organizational members. Data on task, structure, and control characteristics of each unit were collected separately. Quantitative measures of the cultures of the twenty units, aggregated at the unit level, showed that a large part of the differences among these twenty units could be explained by six factors, related to established concepts from organizational sociology, that measured the organizational cultures on six independent dimensions. The organizational culture differences found resided mainly at the level of practices as perceived by members. Scores of the units on the six dimensions were partly explainable from organizational idiosyncrasies but were also significantly correlated with a variety of task, structural, and control-system characteristics of the units.
Examines some logical and conceptual distinctions between job satisfaction and organizational climate. From a selective review of the literature, it is argued that confusion over 3 problems has led to the suggestion that the concept of climate may be a redundancy: (a) The word "satisfaction" implies an affective inner state, while the word "climate" refers to a molar description of a situation. (b) The molar descriptions are composites of practices and procedures, while "climate" is an abstraction of a specific set of practices and procedures. (c) The basic research on satisfaction has been affectively and individually oriented, while climate research has been more descriptively and organizationally oriented. Also discussed are issues regarding the appropriate unit of analysis and issues concerning conceptualization of climate as an independent, dependent, and intervening variable. It is concluded that climate is different from job satisfaction. While both are part of the "attitude research" domain, clear distinctions should be maintained between affect and description and units of analysis. (4 p ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Merger literature suggests that the relationship between shareholder gains and the relatedness of merging firms is contingent upon the compatibility of the two firms' top management cultures. This hypothesis is tested by surveying the perceptions of cultural differences of top management teams of recently acquired firms, and then relating these perceptions to related stock market gains to the buying firms. The findings suggest a strong inverse relationship between perceptions of cultural differences and shareholder gains, after controlling for perceptions of the buying firm's tolerance for multiculturalism and the relative size of the merging firms.
This research investigates the effects of merger and acquisition negotiations on subsequent target company top management turnover. Three attributes of the companies and seven attributes of the merger and acquisition transactions are examined. The results indicate that the primary impact of negotiations is evident in the fourth year after a settlement date. When a buyer approaches an unrelated company that has been subject to previous takeover interest with a merger proposal, and an agreement is reached, the target'S management team is likely to experience abnormally high turnover 4 years later. Additional research ideas are suggested to help explain the sizeable turnover rates in the 3 years immediately following a merger or acquisition.
This paper examines the relationship between organizational performance and consensus (or agreement) within top management teams on company objectives and competitive methods for a sample of nineteen firms competing within a highly fragmented industry—paints and allied products (SIC 2851). It was hypothesized that intense competitive pressures and the resultant low industry profitability would constrain organizational resources and augment the need for consensus on both objectives and methods. However, findings indicate that consensus on either objectives or methods is positively related to organizational performance.
This study investigated the relationship of seven common factors of acquisition strategy to the long run financial performance of acquiring firms: relative size, acquisition rate, industry commonality, timing, type of consideration, acquiree profitability and price paid. The factors were analysed individually and in concert using a database of 138 active acquiring firms which had accomplished some 3500 acquisitions during the 1967-1976 study time period. All factors except price paid were found to be individually significantly statistically related to the performance measures. Also, these factors together accounted for most of the post-merger financial performance which can be attributed to the acquisition programme. These results indicate that six key acquisition variables, on the average, largely determine the success of acquisition strategy. Therefore, by means of those variables, guidelines are provided that should improve the effectiveness of an acquisition programme.
Strategic management studies frequently involve obtaining retrospective data from strategic-level managers. The use of this data acquisition methodology has received relatively little codification and little critical review or comment. This seems unfortunate, as discussion and codification of the methodology could be useful for those academic researchers and corporate staff who study strategic decisions and organizational processes and for those managers who may be asked to provide the retrospective data. This paper is an attempt to remedy the current state of affairs. In particular, the paper reviews several sources of the data inaccuracies that commonly affect retrospective data and offers guidelines for reducing the occurrence or magnitude of these inaccuracies.
Little is known about the effects of a merger or an acquisition on an acquired company's management team. This research follows the employment status of target companies' top managers for 5 years from the date of acquisition. Results indicate that turnover rates in acquired top management teams are significantly higher than ‘normal’ turnover rates, and that visible, very senior executives are likely to turn over sooner than their less-visible colleagues. Variations in top management turnover rates, however, are not accounted for by type of acquisition (i.e. related or unrelated).
While cultural fit has been acknowledged to be a potentially important factor in mergers and acquisitions, the concept has been ill-defined, with no distinction drawn between the national and corporate levels of culture. By examining both international and domestic mergers, the present study assesses the relative role of national and corporate cultural fit in predicting effective integration between merger partners. The innovative, nonparametric co-plot method is introduced, and its main advantage---the simultaneous consideration of both variables and observations---is utilized to explore cultural fit in the two groups of mergers. The findings confirm that national and corporate culture are separate constructs with variable attitudinal and behavioral correlates.
Mintzberg's and Miles and Snow's configurational theories have both received widespread attention. Most researchers, however, have interpreted these theories in terms of categories of organizations rather than organizational configurations based on ideal types. We explicated the logical structure of configurational theories and developed a set of configurational fit models that are congruent with alternative assumptions of equifinality, which is the premise that multiple organizational forms are equally effective. Then the two theories were formalized with these models and tested empirically. Contrary to our expectations, the results do not support Mintzberg's theory that organizations will be more effective to the extent that they resemble his five ideal types. In contrast with these null results, configurational fit based on Miles and Snow's theory predicted 24 percent of the variance in overall organizational effectiveness.
Sumario: This paper critically reviews the field of international business research. The field is characterized by considerable intellectual diversity, where theoretical focus is blurred by the light on internationalization as a strategy process; stage models of internationalization, studies of the link between strategy and structure in MNCs, and studies of administrative processes in MNCs, and recent organitazional models for MNCs. Sequential stages models contributions from research on structures following strategies have a very static character. Research on management processes in MNCs have a questionable empirical base and normative bent. Three key themes for future research on internationalization as a process are suggested. These themes, dealing with major omissions and weaknesses identified in the review, are: the study of acquisition processes and internationalization, the study of dynamic processes in MNCs, and the study of internationalization processes in their outer contexts
Top managers' power plays a key role in strategic decision making. However, although numerous scholars have recognized its importance, very few have attempted to measure the phenomenon. In this article, I present a set of dimensions measuring top managers' power and suggest a measurement methodology to facilitate empirical inquiry. Data from a group of 1,763 top managers in three industries were used to assess the validity and reliability of the power dimensions in three studies. Results demonstrate strong support for the proposed power dimensions.
Blake and Mouton use an actual case of a successful merger to show how their Interface Conflict-Solving Model, based on behavioral science principles, can be used to achieve integration. The authors outline the history of the two organizations, give illustrations of the kinds of changes that were necessary to more from the actual state of affairs within each organization to the conditions needed for synergy, and explain how the merging organizations collaborated to develop a model for the interface. The merger is evaluated from the perspective of what happened during the two years following the merger. Blake and Mouton also elaborate on the dynamics of group behavior that they took into consideration in designing the Interface Conflict-Solving Model: the effects of group members' shared history; the natural tensions that typically exist between groups that have a functional relationship and misperceptions and distortions that arise as a result of these tensions; and win-lose competitiveness instead of a win-win mentality as a shared expectation. Finally, the authors show how shared participation can overcome inappropriate and debilitating competition.
The integration of French and British subsidiaries into U.S.-based multinational is examined. A theory linking the use of control and coordination mechanisms to the need for predictability, flexibility, and the cost of achieving them is investigated by relating organizational structure, technology, foreign commitment, financial performance, and nationality to the use of coordination and control.© 1984 JIBS. Journal of International Business Studies (1984) 15, 85–98
- NAHAVANDI, A.