IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/224499.html
   My bibliography  Save this article

Challenges and Resilience: Managers’ perceptions of firm performance following M&As

Author

Listed:
  • Croucher, Richard
  • Glaister, Keith W.
  • Rizov, Marian
  • Rofcanin, Yasin
  • Wood, Geoffrey

Abstract

We study M&As, resilience and performance, identifying links between managers’ perceptions of performance and resilience, using trans-national organisational-level survey evidence (N=3613) and follow up semi-structured in-depth interviews with managers involved in M&As and demerger. Drawing on the resilience and M&A literature, we identify reasons why employees in acquired firms may be less resilient in coping with the resultant changes than those of the acquirer and why this will negatively impact perceptions of performance. We explore the causes and consequences of variations in resilience and performance within firms that acquire others, and in those that have been demerged. As anticipated, we find that although managers in acquired firms tended to report worse performance than those in acquiring firms, both tended to be more positive than firms that had not taken part in an M&A at all. We draw out implications for theory and practice.

Suggested Citation

  • Croucher, Richard & Glaister, Keith W. & Rizov, Marian & Rofcanin, Yasin & Wood, Geoffrey, 2020. "Challenges and Resilience: Managers’ perceptions of firm performance following M&As," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 69(4), pages 1470-1505.
  • Handle: RePEc:zbw:espost:224499
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/224499/1/APFINAL%20apps.12228.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andrei Shleifer, 2012. "Psychologists at the Gate: A Review of Daniel Kahneman's Thinking, Fast and Slow," Journal of Economic Literature, American Economic Association, vol. 50(4), pages 1080-1091, December.
    2. Maurizio Zollo & Harbir Singh, 2004. "Deliberate learning in corporate acquisitions: post‐acquisition strategies and integration capability in U.S. bank mergers," Strategic Management Journal, Wiley Blackwell, vol. 25(13), pages 1233-1256, December.
    3. Juan C. Botero & Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "The Regulation of Labor," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(4), pages 1339-1382.
    4. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    5. Shleifer, Andrei, 2012. "Psychologists at the Gate: Review of Daniel Kahneman’s Thinking, Fast and Slow," Scholarly Articles 10735580, Harvard University Department of Economics.
    6. Markides, Constantinos & Oyon, Daniel, 1998. "International acquisitions:: Do they create value for shareholders?," European Management Journal, Elsevier, vol. 16(2), pages 125-135, April.
    7. Laurence Capron & Will Mitchell & Anand Swaminathan, 2001. "Asset divestiture following horizontal acquisitions: a dynamic view," Strategic Management Journal, Wiley Blackwell, vol. 22(9), pages 817-844, September.
    8. Dilek Yilmaz Borekci & Yasin Rofcanin & Hasan Gürbüz, 2015. "Organisational resilience and relational dynamics in triadic networks: a multiple case analysis," International Journal of Production Research, Taylor & Francis Journals, vol. 53(22), pages 6839-6867, November.
    9. Kuntz, Joana R. C. & Näswall, Katharina & Malinen, Sanna, 2016. "Resilient Employees in Resilient Organizations: Flourishing Beyond Adversity," Industrial and Organizational Psychology, Cambridge University Press, vol. 9(2), pages 456-462, June.
    10. Egger, Peter & Hahn, Franz R., 2010. "Endogenous bank mergers and their impact on banking performance: Some evidence from Austria," International Journal of Industrial Organization, Elsevier, vol. 28(2), pages 155-166, March.
    11. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    12. Philippe Aghion & Yann Algan & Pierre Cahuc & Andrei Shleifer, 2010. "Regulation and Distrust," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(3), pages 1015-1049.
    13. Natalia Ortiz-de-Mandojana & Pratima Bansal, 2016. "The long-term benefits of organizational resilience through sustainable business practices," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1615-1631, August.
    14. repec:hal:spmain:info:hdl:2441/4km7l02j139aj8hl7kcccmqk9s is not listed on IDEAS
    15. Ron Sanchez, 1995. "Strategic flexibility in product competition," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 135-159.
    16. Ahern, Kenneth R., 2012. "Bargaining power and industry dependence in mergers," Journal of Financial Economics, Elsevier, vol. 103(3), pages 530-550.
    17. Jody Hoffer Gittell & Kim Cameron & Sandy Lim & Victor Rivas, 2005. "Relationships, Layoffs, and Organizational Resilience: Airline Industry Responses to September 11," EERI Research Paper Series EERI_RP_2005_06, Economics and Econometrics Research Institute (EERI), Brussels.
    18. Ahammad, Mohammad Faisal & Tarba, Shlomo Yedidia & Liu, Yipeng & Glaister, Keith W., 2016. "Knowledge transfer and cross-border acquisition performance: The impact of cultural distance and employee retention," International Business Review, Elsevier, vol. 25(1), pages 66-75.
    19. Li, Baibing & Martin, Elaine B. & Morris, A. Julian, 2002. "On principal component analysis in L1," Computational Statistics & Data Analysis, Elsevier, vol. 40(3), pages 471-474, September.
    20. James P. Guthrie & Deepak K. Datta, 2008. "Dumb and Dumber: The Impact of Downsizing on Firm Performance as Moderated by Industry Conditions," Organization Science, INFORMS, vol. 19(1), pages 108-123, February.
    21. Ian Larkin & Lamar Pierce & Francesca Gino, 2012. "The psychological costs of pay‐for‐performance: Implications for the strategic compensation of employees," Strategic Management Journal, Wiley Blackwell, vol. 33(10), pages 1194-1214, October.
    22. Kaplan, Steven N & Weisbach, Michael S, 1992. "The Success of Acquisitions: Evidence from Divestitures," Journal of Finance, American Finance Association, vol. 47(1), pages 107-138, March.
    23. Yilmaz Börekçi, Dilek & Işeri Say, Arzu & Kabasakal, Hayat & Rofcanin, Yasin, 2014. "Quality of relationships with alternative suppliers: The role of supplier resilience and perceived benefits in supply networks," Journal of Management & Organization, Cambridge University Press, vol. 20(6), pages 808-831, November.
    24. Cynthia A. Montgomery & Vicki A. Wilson, 1986. "Research note and communication mergers that last: A predictable pattern?," Strategic Management Journal, Wiley Blackwell, vol. 7(1), pages 91-96, January.
    25. Shepherd, Dean A. & Wiklund, Johan & Haynie, J. Michael, 2009. "Moving forward: Balancing the financial and emotional costs of business failure," Journal of Business Venturing, Elsevier, vol. 24(2), pages 134-148, March.
    26. Angwin, Duncan, 2004. "Speed in M&A Integration:: The First 100 Days," European Management Journal, Elsevier, vol. 22(4), pages 418-430, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gu, Xinbing & Chan, Hing Kai & Thadani, Dimple R. & Chan, Faith Ka Shun & Peng, Yi, 2023. "The role of digital techniques in organisational resilience and performance of logistics firms in response to disruptive events: Flooding as an example," International Journal of Production Economics, Elsevier, vol. 266(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. ATM Adnan, 2018. "Home vs. Cross-Border Takeovers: Is There Any Difference in Investor Perception?," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2018(2), pages 59-84.
    2. Andrew Pendleton & Ben Lupton & Andrew Rowe & Richard Whittle, 2019. "Back to the Shop Floor: Behavioural Insights from Workplace Sociology," Work, Employment & Society, British Sociological Association, vol. 33(6), pages 1039-1057, December.
    3. Teerikangas, Satu & Thanos, Ioannis C., 2018. "Looking into the ‘black box’ – unlocking the effect of integration on acquisition performance," European Management Journal, Elsevier, vol. 36(3), pages 366-380.
    4. Adomako, Samuel & Ahsan, Mujtaba, 2022. "Entrepreneurial passion and SMEs’ performance: Moderating effects of financial resource availability and resource flexibility," Journal of Business Research, Elsevier, vol. 144(C), pages 122-135.
    5. Pierre-Xavier Meschi & Emmanuel Métais, 2007. "Expérience, oubli organisationnel et motifs de désinvestissement des acquisitions internationales:le cas des acquisitions françaises aux États-Unis (1988-2004)," Revue Finance Contrôle Stratégie, revues.org, vol. 10(4), pages 73-109, December.
    6. Anna Stankiewicz-Mróz, 2019. "Influence of Interlocking Directorates on Integration after the Acquisition of Warsaw Stock Exchange—Listed Companies," Sustainability, MDPI, vol. 11(24), pages 1-22, December.
    7. Ahammad, Mohammad Faisal & Tarba, Shlomo Yedidia & Liu, Yipeng & Glaister, Keith W., 2016. "Knowledge transfer and cross-border acquisition performance: The impact of cultural distance and employee retention," International Business Review, Elsevier, vol. 25(1), pages 66-75.
    8. Hong, Yan-Zhen & Su, Yi-Ju & Chang, Hung-Hao, 2023. "Analyzing the relationship between income and life satisfaction of Forest farm households - a behavioral economics approach," Forest Policy and Economics, Elsevier, vol. 148(C).
    9. Potrafke, Niklas, 2013. "Globalization and labor market institutions: International empirical evidence," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 829-842.
    10. López-Sáez, Pedro & Cruz-González, Jorge & Navas-López, Jose Emilio & Perona-Alfageme, María del Mar, 2021. "Organizational integration mechanisms and knowledge transfer effectiveness in MNCs: The moderating role of cross-national distance," Journal of International Management, Elsevier, vol. 27(4).
    11. Stienstra, Miranda, 2020. "The determinants and performance implications of alliance partner acquisition," Other publications TiSEM 7fdee0c2-d4d2-4f5b-95e3-2, Tilburg University, School of Economics and Management.
    12. Michael Breen & Robert Gillanders, 2012. "Corruption, institutions and regulation," Economics of Governance, Springer, vol. 13(3), pages 263-285, September.
    13. Lazarova, Mila & Peretz, Hilla & Fried, Yitzhak, 2017. "Locals know best? Subsidiary HR autonomy and subsidiary performance," Journal of World Business, Elsevier, vol. 52(1), pages 83-96.
    14. Daniel R Clark & Dan Li & Dean A Shepherd, 2018. "Country familiarity in the initial stage of foreign market selection," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(4), pages 442-472, May.
    15. Vendrell-Herrero, Ferran & Bustinza, Oscar F. & Opazo-Basaez, Marco, 2021. "Information technologies and product-service innovation: The moderating role of service R&D team structure," Journal of Business Research, Elsevier, vol. 128(C), pages 673-687.
    16. Djankov, Simeon & Ramalho, Rita, 2009. "Employment laws in developing countries," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 3-13, March.
    17. Simone Moriconi & Pierre M. Picard & Skerdilajda Zanaj, 2019. "Commodity taxation and regulatory competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(4), pages 919-965, August.
    18. Matthias Bürker & G. Alfredo Minerva, 2014. "Civic capital and the size distribution of plants: short-run dynamics and long-run equilibrium," Journal of Economic Geography, Oxford University Press, vol. 14(4), pages 797-847.
    19. Bookhagen, Andrea & Böhnert, Arno F., 2018. "Digitalisierung in der Marktforschung: Ein pragmatischer Ansatz für die Praxis zur Messung impliziter Einstellungen," PraxisWISSEN Marketing: German Journal of Marketing, AfM – Arbeitsgemeinschaft für Marketing, vol. 3(01/2018), pages 135-152.
    20. Bauer, Florian & King, David & Matzler, Kurt, 2016. "Speed of acquisition integration: Separating the role of human and task integration," Scandinavian Journal of Management, Elsevier, vol. 32(3), pages 150-165.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:espost:224499. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.