Cultural influences and the mediating role of socio-cultural integration processes on the performance of cross-border mergers and acquisitions

This article has been made available through the Brunel Open Access Publishing Fund.This paper reports findings from a longitudinal case study (2005–2011) of a merger between an Austrian and a German energy provider. I develop a model of socio-cultural integration processes based on an analysis of critical incidents expressed in 71 problem-centred interviews and observations with acquired and acquiring employees at four different points of time: immediately before the takeover and during the first negotiation talks, and one, three and six years after the takeover. The findings suggest that the relationship between national and organizational cultural differences and M&A outcomes is mediated by socio-cultural integration processes defined in terms of the formation of interpersonal relationships, trust and shared identity. Based on these findings I formulate specific propositions and build an evidence-based model of M&A socio-cultural integration processes that guides future research and practice

The choice of insider or outsider top executives in acquired companies

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

Nonprofit Mergers: An Assessment of Nonprofits' Experiences with the Merger Process

An increasing number of nonprofit organizations are exploring mergers -- the process by which at least two nonprofit corporations join to form one legal entity. Yet, little is known about nonprofits' experiences with the merger process. What leads nonprofits to explore a merger and what outcomes do they expect to achieve as a result? Who within the organization is typically involved in facilitating the merger? How long do mergers take to complete, what do they cost and, above all, what are the results? Drawing on the experiences of 22 nonprofit organizations in Allegheny County that explored, attempted or completed a merger, combined with a comprehensive literature review, this report seeks to answer those questions and provide recommendations that nonprofits and funders can use to inform their conversations about the merger process

Post transfer of undertakings psychological contract violation: modelling antecedents and outcomes

Msc Human Resource ManagementThe purpose of this study was to test a model of antecedents and outcomes of psychological contract violation based on social exchange theory within the context of an acquisition. A cross-sectional quantitative survey research design was used. A total of 200 office and operational employees who had recently gone through a TUPE transfer process as the result of an acquisition partiCipated in the study. PartiCipants were] asked to complete a questionnaire to measure their perceptions of procedural justice and perceived organisational support experienced at the point of TUPE and the resulting psychological contract violation and employee engagement post-TUPE. Multiple regression analysis through SPSS 19.0 was used as the method of analysis. Results indicate that procedural justice and perceived organisational support predicts psychological contract violation. Results indicate that psychological contract violation in turn predicts employee engagement. In addition, psychological contract violation mediates the relationship between procedural justice, perceived organisational support and employee engagement. Therefore, support has been found to state that the psychological contract can be used to explain the relationship between employee perceptions of fairness and support during a TUPE and their post-TUPE reaction of engagement. The study used cross-sectional and self-reported data which limits the conclusions that can be confirmed about causality and also raises concerns about common method bias. Furthermore, it is acknowledged that various extraneous or confounding variable may have an influence on the variables. The study offers insights into employees' responses within the context of TUPE transfers as explored through the psychological contract within the social exchange theory the framework

A new research agenda for managing socio-cultural integration

Post-acquisition socio-cultural integration has received increasing attention from both scholars and practitioners since the early 1990s. During the past decade, research has increasingly focused on emotions and identity in mergers and acquisitions. This chapter introduces the reader to the vibrant research field and its relevance. This section sets the scene for the book, which provides a deeper understanding of how emotions—both positive and negative—as well as values and identity enable a deeper socio-cultural integration after a merger or acquisition, and how leadership plays a crucial role in making it all happen. This chapter also highlights how the Nordic approach to post-acquisition socio-cultural integration refers to a large community of Nordic academics focusing on the softer social and human side of acquisition, often relying on a huge variety of qualitative methods, and to Nordic companies that are not afraid of adopting a more collaborative approach to post-acquisition integration

The Minimized Face of Internal Communication: An Exploration of How Public Relations Agency Websites Frame Internal Communication and its Connection to Social Media

Internal communication is increasingly vital to organizational success due to the influence of social media, yet it remains understudied within public relations research. Using a qualitative content analysis of 181 websites, this study examines how leading public relations agency websites frame the value of internal communication and its connection to social media. Findings reveal internal communication is largely missing from the frame. When explicitly referenced, it is mostly framed as synonymous with employee communication as a means for management to communicate to employees, though some portrayals are more robust. Websites frame internal communication’s value as enhancing financial outcomes by improving workplace culture, employee engagement, and workers’ willingness to support management’s preferred organization brand or reputation. Social media are disconnected from internal communication and are mostly framed as tools that require additional employee training to use in order to reach external audiences. A handful of agencies urge organizations to include social media and internal stakeholders within the internal communication function. Recommendations are made for future internal communication research and practice

Strategies of Cultural Integration in Successful Merger-Companies

Abstract: This research aimed to discover strategies in integrating a new culture within the merger companies. The strategies have elements including values, phases, leader role, and the system of cultural integration construction. This research used a meta-analysis with an expose facto research design. Findings indicate new cultural integrations were carried out by many companies through demonstrating internal and external values. Integrations are implemented through ‘pre, process, and post-merger’.  The most important in the preliminary stage is started by benchmarking, leading entire stages, and keeping a balance of collaboration between human and non-human aspects as well as leader and member components. This study concludes that the identified strategies highly contributed to effective management changes at micro, meso, and macro level. The implication is that leaders have to consider new cultural integration strategies properly. Since this study were based on meta analysis findings, future research needs to include empirical data originated from merging organizations.Key Words: strategy, cultural integration, organizationAbstrak: Penelitian ini bertujuan untuk menemukan strategi guna mengintegrasikan budaya baru dalam perusahaan merger. Dalam elemen strategi terdapat nilai-nilai, fase, peran pemimpin, dan sistem konstruksi integrasi budaya. Penelitian ini menggunakan meta-analisis dengan desain expose facto. Temuan dari banyak perusahaan melalui pembuktian nilai-nilai internal dan eksternal. Integrasi dilaksanakan melalui 'pra, proses, dan pasca merger'. Dalam tahap pendahuluan, hal yang paling penting adalah benchmarking, memimpin seluruh tahapan, dan menjaga keseimbangan antara kolaborasi dan aspek non-manusia serta komponen pemimpin dan anggota. Studi ini menyimpulkan bahwa strategi sangat berkontribusi terhadap perubahan manajemen yang efektif di tingkat mikro, mezo, dan makro. Para pemimpin harus mempertimbangkan strategi integrasi budaya baru dengan benar. Penelitian masa depan perlu memasukkan data empiris yang berasal dari penggabungan organisasi.Kata kunci: strategi, integrasi budaya, organisas

Dialogue as a source of positive emotions during cross-border post-acquisition socio-cultural integration

PurposeThe purpose of this paper is to analyse how dialogue can be used to promote post-acquisition socio-cultural integration. Specifically, it addresses questions regarding when and how companies can utilise dialogue to generate positivity regarding socio-cultural integration.Design/methodology/approachA single case study approach was adopted owing to its suitability for creating in-depth understanding in the context of socio-cultural integration. Primary data were collected via interviews, an employee satisfaction survey, and participant observation. Secondary data were obtained from the case company’s internal materials, such as strategies, integration workflows, and employee magazines. Analysis methods included descriptive statistics and thematic qualitative analysis.FindingsThe findings suggest that dialogue can be used to create positivity regarding socio-cultural integration throughout the stages of unfreezing, moving, and refreezing by actively engaging employees in voicing, listening, respecting, and suspending. It is proposed that cultural conflict during post-acquisition socio-cultural integration can be overcome through the generation of positivity; dialogue enables the collective management of emotions during post-acquisition integration by offering a platform for creating positivity and social cohesion; and due to its collaborative and engaging nature, dialogue provides an especially effective means of communication for overcoming cross-cultural conflict.Originality/valueTo the authors’ knowledge, this is the first attempt to showcase dialogue as a specific means of communication for creating positivity during cross-border socio-cultural integration. This study reached beyond comparative cultural research to offer views on positivity, emotion during socio-cultural integration, and dialogue as means for overcoming cross-cultural conflict.</jats:sec

Mergers and acquisitions transactions strategies in diffusion - type financial systems in highly volatile global capital markets with nonlinearities

The M and A transactions represent a wide range of unique business optimization opportunities in the corporate transformation deals, which are usually characterized by the high level of total risk. The M and A transactions can be successfully implemented by taking to an account the size of investments, purchase price, direction of transaction, type of transaction, and using the modern comparable transactions analysis and the business valuation techniques in the diffusion type financial systems in the finances. We developed the MicroMA software program with the embedded optimized near-real-time artificial intelligence algorithm to create the winning virtuous M and A strategies, using the financial performance characteristics of the involved firms, and to estimate the probability of the M and A transaction completion success. We believe that the fluctuating dependence of M and A transactions number over the certain time period is quasi periodic. We think that there are many factors, which can generate the quasi periodic oscillations of the M and A transactions number in the time domain, for example: the stock market bubble effects. We performed the research of the nonlinearities in the M and A transactions number quasi-periodic oscillations in Matlab, including the ideal, linear, quadratic, and exponential dependences. We discovered that the average of a sum of random numbers in the M and A transactions time series represents a time series with the quasi periodic systematic oscillations, which can be finely approximated by the polynomial numbers. We think that, in the course of the M and A transaction implementation, the ability by the companies to absorb the newly acquired knowledge and to create the new innovative knowledge bases, is a key predeterminant of the M and A deal completion success as in Switzerland.Comment: 160 pages, 9 figures, 37 table