The role of emotions during mergers and acquisitions: A review of the past and a glimpse into the future

Research on emotions during different phases of the merger and acquisition (M&A) process (i.e., pre-M&A, during M&A and post-M&A) has increased exponentially over the past three decades. However, few attempts have been made to integrate the findings. By systematically reviewing research on emotions during M&As published over the past 30 years, this paper aims to contribute to filling this gap. We organized our findings using a process framework, addressing emotional triggers, the nature of emotions and their dynamics, effects and management. Our review reveals several oversights in research on emotions during M&As, such as the emotional dynamics between the different M&A phases and the role of positive emotions. To address these oversights, future research is encouraged to (a) study emotions following a process-oriented perspective on M&As and include the (interrelationships between) different M&A phases, (b) address the emergence of emotional heterogeneity and homogeneity among organizational members during these phases, (c) investigate the widespread effects of positive emotions and take into account various levels of emotion and (d) explore how emotions can be successfully managed. The paper concludes with a discussion of how these research directions can advance research on emotions during the M&A process

How private equity investors drive M&A performance

While Merger & Acquisition (M&A) activity has reached unprecedented levels over recent years, M&A failure rates remain high. Yet, there is growing evidence that private equity funds show high success rates. As little is known about the differences between different types of buyers, and only scant information exists on private equity funds’ operations, we inductively explore the reasons for their outperformance. In this qualitative study, we identify three characteristics (i.e., organizational set-up, private equity investors’ professional identities, and an integrative work approach), which we brought together into a theoretical framework that explains how private equity professionals can enable better M&A performance. Finally, our findings underline the effectiveness of specific incentivization approaches applied in private equity funds

A simple rule is born: How CEOs distill heuristics

Managerial heuristics play an important role in decision-making and positively contribute to strategy, innovation, organizational learning, and even the survival of a firm. Little is known, though, about the process through which heuristics emerge. Following a grounded theory approach, we develop a process model of how managers create and develop heuristics from experience. The 4-step model – dissonancing, realizing, crystallizing, and organizing – captures the sequence of cognitive schemata that start with a flawed assumption, give rise to heuristics that tend to be born in pairs, and end with mature and shared heuristics. With these findings, we contribute to the literature on heuristics by offering a model for the process of their emergence, a view on how feelings initiate, guide, and strengthen this process, and a description of the role played by the environment, enriching the ecological rationality perspective

When Entrepreneurial Passion Backfires

Research shows that the way in which entrepreneurial team members work together plays an important role in determining venture outcomes. But does passion always lead to great teamwork? Is it the more passion the better? What happens if one team member is very passionate and another not passionate at all? What if people are passionate about different things? Researchers surveyed 107 tech teams participating in an accelerator program, and found that diversity of passion among individual team members — in terms of how passionate they are, and what they’re passionate about — had a negative relationship with team performance, due to conflicting emotions and identities within the team

Toward a sustainable career perspective on contingent work: a critical review and a research agenda

Purpose: The purpose of this paper is to provide a synthesis of the contingent work field and to advocate a sustainable career perspective on contingent work. Design/methodology/approach: Adopting a broader review approach allowed to synthesize the contingent work literature across contingent work types (temporary agency work, gig work and freelance work) and develop a sustainable career perspective on contingent work. The authors searched for empirical, conceptual and review articles published from 2008 to December 2021. In total, the authors included 208 articles. Findings: The authors advocate a sustainable career perspective that allows for organizing and synthesizing the fragmented contingent work literature. Adopting a sustainable career perspective enables to study contingent work from a dynamic perspective transcending one single organization. Originality/value: The field is suffering from fragmentation and most importantly from an oversight of how contingent work experiences play a role in a persons’ career. This paper addresses this problem by adopting a sustainable career perspective on contingent work