Relationship of CEO and TMT Pre-merger Power Characteristics of Acquiring and Target Firm with Post-merger Effectiveness

Support was found that an increase in the level of power in the post-acquisition firm over that which had existed in the acquiring firm resulted in a higher level of post-merger firm performance. Also it was found there were important contingencies within the power dimensions that must be analyzed to facilitate the transfer of target executive power into the post-merger firm. These contingencies included an understanding of the power levels that existed in the pre-merger firms and the impact this may have had on the retention of target executive power. Support was also found that when the acquiring organization had a higher level of prestige power than that which existed within the target organization, that target executives were more inclined to join the post-merger firm. Other important considerations were the levels of structural power within the pre merger organizations and the willingness of the CEO of the post-merger firm to share a portion of this power. The willingness of the CEO to reduce his/her levBusiness Administration (MBA

POWER CHARACTERISTICS OF ACQUIRING AND TARGET FIRM WITH POST-MERGER EFFECTIVENESS

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