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

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  • Ralf Bebenroth

    (Kobe University)

  • Robert A. Goehlich

    (Embry-Riddle Aeronautical University)

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.

Suggested Citation

  • Ralf Bebenroth & Robert A. Goehlich, 2021. "Necessity to integrate operational business during M&A: the effect of employees’ vision and cultural openness," SN Business & Economics, Springer, vol. 1(8), pages 1-17, August.
    • Handle: RePEc:spr:snbeco:v:1:y:2021:i:8:d:10.1007_s43546-021-00109-x
    DOI: 10.1007/s43546-021-00109-x
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