Employee reactions to M&A: role of LMX and leader communication

Unveiling the Role of Cross-Cultural and Cognitive Differences in Organizational Learning Mechanism of Technology-Acquiring Cross-Border Mergers and Acquisitions: Evidence From Emerging Market Enterprises

In recent years, cross-border mergers and acquisitions (M&As) of emerging market enterprises (EMEs) have increased rapidly, and many cross-border M&A have been conducted in the United States, Western Europe, and other developed countries. This new type of technology-acquiring cross-border M&A has several unique features. In particular, the cross-cultural differences between the home country and the host country and the cognitive differences between emerging markets and developed markets pose a huge challenge to the organizational learning of technology-acquiring cross-border M&A of enterprises from emerging markets. Based on this, the present study innovatively constructs an integrated theoretical model to explore the role of cross-cultural and cognitive differences in the organizational learning mechanism of technology-acquiring cross-border M&A in emerging markets. In this study, the partial least squares structural equation model (PLS-SEM) was used in an empirical study of 240 Chinese technology-acquiring cross-border M&A enterprises, and it was found that cultural and cognitive differences play an important role in technical ability and learning performance. The study also found that the interaction of cross-cultural differences between the home and host countries and the cognitive differences between the emerging and developed markets promoted the learning performance of cross-border M&A in the emerging markets. Based on the integration theory of cultural differences, cognitive differences, and technical ability, this paper unveils the role of cross-cultural and cognitive differences in organizational learning mechanisms of technology-acquiring cross-border M&A.

Investigating the impact of knowledge sharing system on workplace deviance: a moderated mediated process model in Indian IT sector

Purpose

This study aims to ascertain the impact of perceived knowledge sharing systems on destructive and constructive deviance through employee engagement. Also, this study explores the moderating role of perceived organizational support (POS).

Design/methodology/approach

Data were collected from 403 entry-level IT employees. Structural equation modeling and PROCESS macro by Preacher and Hayes were used to examine the proposed hypotheses.

Findings

Results specified a significant impact of perceived knowledge sharing systems on employee engagement, which in turn, exhibited a negative relationship with a destructive and positive relationship with constructive deviance, respectively. Results revealed that employee engagement significantly mediated the relationship between perceived knowledge sharing systems and destructive and constructive deviance. Concerning moderating role of POS, it was found that at a high level of POS, the effect of knowledge sharing systems on employee engagement was significant in a positive direction and reached its highest level. Finally, for moderated mediation, results only supported the indirect effects of knowledge sharing systems on destructive deviance through employee engagement at different levels of POS.

Research limitations/implications

This study infers that IT organizations must implement measures to enhance employee engagement and POS by investing in embedded knowledge sharing systems. This will not only cater to the customized needs of employees but will also reduce destructive deviance and stimulate constructive deviance.

Originality/value

Given a few studies integrating workplace deviance, this is the first study that proposes an integrated process model to overcome destructive and stimulate constructive deviance among IT employees by assessing the role of knowledge sharing systems as an antecedent, employee engagement as a mediator and POS as a moderating variable.

Impact of psychological capital on the resistance to change during post-merger integration

Purpose

Mergers and acquisitions (M&As) are major corporate changes and are among the most stressful for employees. Employee resistance is a well-recognised reason for high failure rates of post-merger integration (PMI). The contemporary concept of psychological capital (PsyCap) is a promising approach for dealing with the issue. To date, relatively little research has been conducted on the relationship between PsyCap and resistance. The purpose of this paper is to examine the possible positive impacts of PsyCap on employee resistance during PMI, based on a review of the existing literature and selected interviewers with a panel of experts, and offer a theoretical model for decreasing the resistance.

Design/methodology/approach

This paper builds on the literature on M&A, PMI, and employee resistance by focusing on the contribution of PsyCap. Apart from formulating propositions and answering pre-determined research questions, the findings are the basis for a theoretical model that was validated by a panel of experts.

Findings

This research documents the negative emotions that are triggers for resistance during PMI under the influence of PsyCap. By measuring and assessing the PsyCap needs of employees, resistant employees were revealed, and their PsyCap was developed using tailored interventions. The research findings indicate this to be a feasible approach for reducing resistance during PMI.

Research limitations/implications

All of the findings rely on empirical testing and operationalisation. Cultural differences may influence the PsyCap dimensions.

Practical implications

M&A deals often fail due to unsuccessful PMI implementation because leaders fail to consider the psychological impacts when trying to overcome resistance. The model proposes a possible solution.

Originality/value

The offered theoretical approach is original and provides new insights for researchers and practitioners who evaluate M&A strategies.

Is the Role of HRM Strategic in M&A Success? Exploring the Involvement of HRM in a due Diligence Process

Mergers and Acquisitions are a common means to achieve corporate growth, yet there is a high rate of failure. Recently, attention has turned to the key importance of HRM in the process, though there has been a surprising lack of empirical research into how Human Resources' involvement in due diligence affects M&A outcomes. This paper presents original research showing a strong positive correlation between HRM due diligence and the success of an M&A deal, and also develops a discriminant model of the leading ‘deal success factors’. Concentration on specific areas of HRM due diligence is shown to lead to the success of the deal. The paper draws conclusions on the significance of this research and its implications for practice.