Tuesday, 16 June 2015

Integration Management of Western Acquisitions in ameerica

Researchers have identified numerous reasons for employee resistance. First, a general scepticism or fear after the announcement of an M&A, also known as the 'merger syndrome', results in distrust, tension and hostility between employees and senior management (Blake and Mouton, 1985; Marks and Mirvis, 1986). Even if only very few changes are to be implemented, M&A activity has a destabilizing effect on the involved employees (Nikandrou et al., 2000). Second, differences in management styles have been found to be negatively correlated with M&A success (Datta, 1991). Third, cultural issues, both at organizational and national level, have been identified as a main success factor (Cartwright and Cooper, 1993; Morosoni et al., 1998; Amano and Suzuki, 2002). While the majority of scholars agree that organizational cultural fit positively influences integration outcomes (eg Cartwright and Cooper, 1993), they have found mixed and even contradictory results on the effects of national cultural fit (Olie, 1994; Morosoni et al., 1998). Barkema et al. (1996) argue that cross-border M&A might be more difficult, since companies have to engage in a double-layered acculturation, that is both organizational and national cultural integration.

Website: http://www.arjonline.org/business-and-management/american-research-journal-of-business-and-management/

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