Does National Context Affect Target Firm Employees' Trust in Acquisitions? A Policy-Capturing Study

Stahl, Günter and Chua, Chei Hwee and Pablo, Amy L. (2012) Does National Context Affect Target Firm Employees' Trust in Acquisitions? A Policy-Capturing Study. Management International Review, 52 (3). pp. 395-423. ISSN 0938-8249


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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 decision-making 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.

Item Type: Article
Additional Information: To see the final version of this paper please visit the publisher's website. Access to the published version requires a subscription.
Keywords: cross-border mergers and acquisitions / post-acquisition integration / trust / policy-capturing / hierarchical linear modeling
Divisions: Departments > Welthandel > BWL des Außenhandels
Version of the Document: Accepted for Publication
Variance from Published Version: Minor
Depositing User: Dissertation Administrator
Date Deposited: 21 Aug 2012 14:39
Last Modified: 15 Sep 2017 14:02
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