The Effects and Management of Cultural Differences During the Integration Process of Mergers and Acquisitions

Sciriha, Ivan; Debono, Manwel

doi:10.17349/jmc117402

Cited by 1 publication

(3 citation statements)

References 19 publications

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“…A practical approach to managing cultural issues is to develop a set of cultural features for all, such as customer-focused, innovative, conclusive, team-based, and respectful (Dixon, 2005). Giffords and Dina (2003) and Sciriha and Debono (2018) agreed that hard issues such as staff compensation during M&As deals are easy to measure than SIs such as organizational culture and human relations. However, they accept the effective role of SIs in M&As deals.…”

Section: Soft Issues Knowledge Andtechnology Sharing Andtransfer and Firm Performancementioning

confidence: 99%

“…Along with cultural differences, contradictions in HRM policies and practices between two organizations also affect employees regarding KTST practices and FP at the post-M&As stage. A common culture can be created with justice in HRM practices of two cultures at a post-M&As stage such as reward management, training and development, workplace environment, and health security programs (Bansal, 2016;Sciriha & Debono, 2018). Discrimination among employees by HRM can create stress, uncertainty, and anxiety among employees at post-M&As stage (Napier, 1989;Weber & Tarba, 2010).…”

Section: Soft Issues Knowledge Andtechnology Sharing Andtransfer and Firm Performancementioning

confidence: 99%

“…The hard issues consist of financial, legal, and marketing problems during M&As deals, whereas SIs comprise human resource (HR), national and organizational culture, and leadership styles problems (Bari et al, 2016). In the 20th century, M&As' consultants and academic researchers were more concerned about hard issues than SIs (Sciriha & Debono, 2018). Scholars agreed that hard issues play a more significant role in the failure of M&As strategies.…”

Section: Introductionmentioning

confidence: 99%

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Soft Issues During Cross-Border Mergers and Acquisitions and Industry Performance, China–Pakistan Economic Corridor Based View

et al. 2019

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China-Pakistan Economic Corridor (CPEC) has got a vital position in the perspectives of economic growth and sustainable development of China and Pakistan. Viewing these prospects, the Chinese organizations are taking interest to deal with Pakistani organizations for the reinforcement of the mergers and acquisitions (M&As) deals. But, soft issues (SIs), such as, differences in organizational and national cultures, leadership styles, and human resource (HR) practices, may arise between Sino-Pak business entities which may hamper the successful dealings of M&As. This research investigates the effects of SIs on knowledge and technology sharing and transfer (KTST) and firm performance (FP), leading to industry performance (IP), and KTST effect on FP. Drawing on social exchange theory, psychological contract development and maintenance (PCDM) is investigated as a moderator in this study. The convenience sampling technique and administrative survey approach are applied for data collection. The 550 questionnaires were distributed among the Chinese and Pakistani workers. However, only 435 respondents gave proper feedback. Partial least square, structural equation modeling (PLS-SEM), a statistical model through smart PLS-3 is applied to analyze the data. The results elucidate the negative impacts of SIs on KTST and FP while KTST affects positively on FP and FP positively affects IP. The PCDM significantly moderates the effects of SIs on KTST and FP. If the Chinese organizations concentrate upon PCDM, the SIs would be resolved. The productive deals of M&As would be helpful in underpinning the exclusive growth of CPEC projects. The implications and limitations are discussed at the end of this study. Keywords soft issues, knowledge and technology sharing and transfer, firm performance, industry performance, psychological contract, CPEC Research Question 1: What key SIs may arise during cross-border M&As deals, especially among Sino-Pak business organization? Research Question 2: How SIs affect KTST practices and FP, leading to IP, and KTST practices affect FP? Research Question 3: How PCDM moderates the effect of SIs on KTST practices and FP, leading to the IP?

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Section: Soft Issues Knowledge Andtechnology Sharing Andtransfer and Firm Performancementioning

confidence: 99%

Section: Soft Issues Knowledge Andtechnology Sharing Andtransfer and Firm Performancementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Soft Issues During Cross-Border Mergers and Acquisitions and Industry Performance, China–Pakistan Economic Corridor Based View

et al. 2019

View full text Add to dashboard Cite

show abstract

The Effects and Management of Cultural Differences During the Integration Process of Mergers and Acquisitions

Cited by 1 publication

References 19 publications

Soft Issues During Cross-Border Mergers and Acquisitions and Industry Performance, China–Pakistan Economic Corridor Based View

Soft Issues During Cross-Border Mergers and Acquisitions and Industry Performance, China–Pakistan Economic Corridor Based View

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