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Necessity to integrate operational business during M&A: the effect of employees’ vision and cultural openness

Authors
  • Bebenroth, Ralf1
  • Goehlich, Robert A.2
  • 1 Kobe University, 2-1, Rokodai, Nada-ku, Shinkan 1307, Kobe, 657-8501, Japan , Kobe (Japan)
  • 2 Embry-Riddle Aeronautical University, Worldwide, Europe Campus, Bessie-Coleman-Str. 7, Frankfurt, 60549, Germany , Frankfurt (Germany)
Type
Published Article
Journal
SN Business & Economics
Publisher
Springer International Publishing
Publication Date
Jul 14, 2021
Volume
1
Issue
8
Identifiers
DOI: 10.1007/s43546-021-00109-x
Source
Springer Nature
Keywords
Disciplines
  • Original Article
License
Yellow

Abstract

This research investigates the impact of target-firm employees’ vision and cultural openness to integrate their operational business into a bidder firm. Our empirical analyses are performed on a sample of 176 employees of a medium-sized German engineering firm in the waste power plant industry taken over by a Japanese steelmaker. The questionnaire results show that, not the vision of German employees but their cultural openness positively correlates to the perceived need of integration. However, culturally open employees with a clear, articulated vision perceive less need to integrate their operational business into the Japanese bidder firm. This research contributes to understanding the behavior of the target-firm’s employees in particular. The results are useful for managers who are involved in a cross-border acquisition. Therefore, we discuss practical implications of our findings as well as its limitations.

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