Skip to main content
Article thumbnail
Location of Repository

The choice of insider or outsider top executives in acquired companies

By Duncan Angwin and Maureen Meadows

Abstract

There is considerable debate amongst academics and practitioners over whether top executives of acquired or merged companies should stay or go, post-deal, as studies exploring the link with organisational performance show mixed results. This may in part be due to such studies failing to recognise that there are a number of distinct post-acquisition strategies which may require the deployment of different types of top executive. This paper addresses this limitation by bringing together the longstanding Insider/Outsider debate with a post-acquisition integration framework, in order to investigate whether there is a link between top management type and post-acquisition integration strategy. Using a dual methodology of survey and cases drawing on UK M&A data, clear associations are found between top executive type and particular post-acquisition styles. Underlying these patterns, the value-creating/value-capturing distinction of the Resource-Based View appears to have a greater influence over top executive deployment than do issues of Organisational Fit. This suggests strategic intentions have ascendancy over organisational constraints in the selection of top executives for managing post-acquisition integration

Topics: HD28
Publisher: Elsevier
Year: 2009
OAI identifier: oai:wrap.warwick.ac.uk:2484

Suggested articles

Citations

  1. (1986). Postmerger integration. doi
  2. (1967). Why do mergers miscarry? Harvard Business Review,
  3. (1988). Top executive turnover following mergers and acquisitions, doi
  4. (1996). After the fall, Management Today,
  5. (1991). Mergers, acquisitions and the pruning of managerial deadwood: An examination of the market for corporate control. doi
  6. (1960). Administrative Succession in Formal Organisations, doi
  7. (1991). Managing Acquisitions. doi
  8. (1991). Managing the Merger. Making it work.
  9. (1993). Effects of executive departures on the performance of acquired firms, doi
  10. (2007). Performance consequences of new CEO „Outsiderness‟: Moderating effects of pre- and post-succession contexts, doi
  11. (2001). Executive retention and acquisition outcomes: a test of opposing views on the influence of organizational tenure. doi
  12. (1989). The human side of mergers and acquisitions: Managing collisions between people and organisations. doi
  13. (2006). Stewards, Agents and the founder discount: executive compensation in new ventures. doi
  14. (2003). Executive turnover in acquired firms: an analysis of resource-based theory and the upper echelons perspective.
  15. (1980). Turnaround strategies. doi
  16. (1985). Organisational evolution: a metamorphosis model of convergence and reorientation,
  17. (1991). The seasons of a CEOs tenure, doi
  18. (1992). Manager succession and organisational outcomes in turbulent environments, doi
  19. (1960). Administrative Succession in Formal Organisations, Social Forces doi
  20. (1987). The dynamics of taking charge. doi
  21. (1992). Strategic consequences of executive succession within diversified firms, doi
  22. (1988). Acculturation in mergers and acquisitions, doi
  23. (1994). The acquisition integration process: a contingent framework, in
  24. (1984). A resource-based view of the firm, doi
  25. (1975). Mergers: Motives, Effects, Policies. Ann Arbor: doi
  26. (1991). Firm Capabilities and Sustained Competitive Advantage, doi
  27. (1989). Asset stock accumulation and sustainability of competitive advantage, doi
  28. (1998). Resource redeployment following horizontal acquisitions doi
  29. (1974). Post acquisition retention of top executives: A research study.
  30. (1989). Implementing mergers and acquisitions: the role of cultural differences and level of integration. Unpublished study, College of business administration,
  31. (1977). The ambiguity of leadership. doi
  32. (2001). What is strategy – and does it matter? Thompson Learning. 2 nd edition.
  33. (2001). op cit.
  34. George C.(2001) Organizational Causes and Strategic Consequences of the Extent of Top Management Team Replacement During Turnaround Attempts. doi
  35. (1983). Research methodologies for contingency approached to business strategy, doi
  36. (1994). Research design: Qualitative & Quantitative approaches. doi
  37. (1991). Organisational fit and acquisition performance: effects of postacquisition integration. doi
  38. (1988). Sharpbenders: The secrets of unleashing corporate potential. doi
  39. (1982). The General Managers. doi
  40. (2007). Performance consequences of new CEO „outsiderness‟. Moderating effects of pre- and post succession contexts, doi
  41. (1990). Relationships between type of acquisition, the autonomy given to the acquired form, and acquisition success: An empirical analysis, doi
  42. (1979). Decentralization: Managerial ambiguity by design, doi
  43. (1994). Case study research: design and methods. doi
  44. (1967). The Discovery of Grounded Theory: Strategies for Qualitative Research. Aldine Publishing Co: doi
  45. (1994). The qualitative research interview, in
  46. (1960). A coefficient of agreement for nominal scales. doi
  47. (1984). Measuring organizational performance in the absence of objective measures: the case of the privately-held firm and conglomerate business unit. doi
  48. (2004). Deliberate learning in corporate acquisitions: postacquisition strategies and integration capability in U.S. doi
  49. (2002). Organizational identification after a merger: A social identity perspective. doi
  50. (2004). Speed in M&A integration: the first 100 days.
  51. (2002). Content analysis in mass communication: Assessment and reporting of intercoder reliability. doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.