Mergers and acquisitions across European borders: National perspectives on preacquisition due diligence and the use of professional advisers

Angwin, Duncan

doi:10.1016/s1090-9516(00)00053-5

Cited by 168 publications

(137 citation statements)

References 16 publications

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“…In particular, depending on their cultural background, acquirers adopt differing evaluation and integration approaches (Angwin 2000;Calori et al 1994;Child et al 2001;Teerikangas 2006). Furthermore, the degree of integration mediates the relationship between cultural differences and acquisition performance (Bresman et al 1999;Slangen 2006).…”

Section: Integration Management In Mandamentioning

confidence: 99%

Cultural Change Following International Acquisitions: Cohabiting the Tension Between Espoused and Practiced Cultures

Teerikangas

Irrmann

2016

Manag Int Rev

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This paper explores post-acquisition cultural change following international acquisitions. Despite the acknowledged complexity of the cultural encounter in acquisitions, less is known about cultural change following acquisitions by global organizations where a tension between espoused vs. practiced cultures co-exists. Our study leads us to identify the drivers, outcomes and directions of post-acquisition cultural change amid such contexts. In contrast to a seemingly singular, monolithical perspective, we present post-acquisition cultural change as a dyadic, bipolar process, whereby acquired firms cohabit the space between espoused and practiced values. Reflecting the acquirer's cultural regime, targets align with either the acquirer's espoused or practiced culture. Further, whereas previous research parallels cultural change with explicit initiatives, we find that cultural change results from all post-acquisition integration activity. Given the power of practiced over espoused culture, the findings call for recognition that in global organizations leveraging culture goes beyond leveraging values only. The findings are based on a large-scale qualitative research program, wherein eight international acquisitions conducted by four Finnish, globally-operating industrial acquirers were studied, totalling 166 interviews.

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Section: Integration Management In Mandamentioning

confidence: 99%

Cultural Change Following International Acquisitions: Cohabiting the Tension Between Espoused and Practiced Cultures

Teerikangas

Irrmann

2016

Manag Int Rev

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“…Although research on cross-national variations in M&A is limited, there is some evidence that the way acquiring firms approach integration and the way target firm members respond to a takeover are contingent on their national origin (Goulet & Schweiger, 2006;Stahl & Javidan, 2009). For example, the results of a survey of European top executives regarding national perspectives on pre-acquisition due diligence suggest that cultural differences play an important role in affecting acquiring managers' perceptions of target companies and their use of professional advisors in the pre-acquisition phase, both of which have implications for deal negotiation and subsequent management of the post-acquisition integration process (Angwin, 2001). …”

Section: Acquired Firm Member Trust: the Impact Of National Contextmentioning

confidence: 99%

“…Calori, Lubatkin, Very, & Veiga (1997) have suggested that at the national level, social, political and legal institutions form the context in which managerial practices develop and are applied. Thus, differences in business systems, corporate governance structures, laws and regulations, labor management relations, and a host of other factors that vary across countries can result in distinct approaches to M&A and affect the M&A process (Angwin, 2001;Child et al, 2001;Schuler, Jackson & Luo, 2004;Shimizu et al, 2004). The hostile takeover bid of Mannesmann by Vodafone, which we will analyze in more detail later, provides an instructive example.…”

Section: Acquired Firm Member Trust: the Impact Of National Contextmentioning

confidence: 99%

“…Research suggests that managers and employees affected by acquisitions are likely to differ in their attitudes and reactions depending on whether the acquirer is a local or a foreign company (Angwin, 2001;Calori et al, 1994;Krug & Nigh, 2001;Weber et al, 1996). For example, Krug and Nigh (2001), based on surveys and interviews with executives of US target companies, found that a greater number of executives in foreign acquisitions were terminated and those who left voluntarily complained more frequently about lower job status than executives in domestic acquisitions.…”

Section: Cross-border Versus Domesticmentioning

confidence: 99%

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Does National Context Affect Target Firm Employees’ Trust in Acquisitions?

2011

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Abstract In this study, we test the assumption that the way target firm employees respond to a takeover is contingent on their national origin.  The antecedents of target firm member trust in the acquiring firm management were examined in a cross-national sample of German and Singaporean employees using a policy-capturing design.  Five factors hypothesized to affect target firm member trust after a takeover were found to be significant influences on employees' trust judgments in a decisionmaking simulation: (i) combining firms' collaboration history, (ii) mode of takeover, (iii) whether it was a domestic or cross-border acquisition, (iv) degree of autonomy removal, and (v) attractiveness of the acquiring firm's human resource policies and reward system. Further analyses suggest that the relative importance of these factors in predicting target firm employees' reactions to a takeover varies depending on their national origin.  We conclude that companies engaged in cross-border acquisitions need to consider contingencies in the cultural and institutional contexts in which the acquired firms are embedded and adapt their approaches for integrating them accordingly.

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“…It is a culture of economics (profits) rather than a culture of values (morals) '. 1996), have also played a significant role in international mergers and acquisitions, from preacquisition management (Angwin 2001) to the integrating mechanisms used to establish headquarter-subsidiary control (Lubatkin et al 1998). As Calori et al (1994) conclude, firms are guided by their national administrative heritage when they acquire companies abroad.…”

Section: National Culture In Business Studiesmentioning

confidence: 99%

Homo Nationis: The Psychosocial Infrastructure of the Nation-State Order

Pickel¹

2006

The Problem of Order in the Global Age

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The central argument of this paper is that the global expansion of sovereign nation-states has been accompanied by the emergence of a particular type of modern individual, homo nationis. The general significance of this argument lies in the fact that this personality type, which is either taken for granted (untheorized) or ignored, constitutes an integral component of modern social order. That is, in addition to the constitutional and institutional foundations of the state and its political economy, the nation-state has a psychosocial foundation -a "national habitus." The concepts of homo nationis and national habitus underscore that modern individuals are historical individuals, i.e. they have personality structures that are unlike those of individuals in other historical epochs, and that they should be explicitly conceptualized as such, rather than as a transhistorical homo oeconomicus or homo sociologicus. Many fundamental social processes, including those discussed under globalization, can be better explained with such a conception. The historical-structural context for homo nationis is the world order of nation-states that has only recently finished formally incorporating all other social formations from tribes to the remnants of empires, as well as the specific state-society to which the individual belongs.The paper notes the interest Durkheim and Weber had in habitual behaviour and draws on the exemplary work of Norbert Elias on national habitus to sketch its conception of homo nationis. The paper then assembles further evidence for the existence and significance of national habitus by perusing a diverse set of scholarly literatures, including national culture in business studies, national economies and economic nations, nationalism, comparative sociology, and normative political theory.

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Mergers and acquisitions across European borders: National perspectives on preacquisition due diligence and the use of professional advisers

Cited by 168 publications

References 16 publications

Cultural Change Following International Acquisitions: Cohabiting the Tension Between Espoused and Practiced Cultures

Cultural Change Following International Acquisitions: Cohabiting the Tension Between Espoused and Practiced Cultures

Does National Context Affect Target Firm Employees’ Trust in Acquisitions?

Homo Nationis: The Psychosocial Infrastructure of the Nation-State Order

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