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Between merger and syndrome: The intermediary role of emotions in four cross-border M&As

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  • Sinkovics, Rudolf R.
  • Zagelmeyer, Stefan
  • Kusstatscher, Verena

Abstract

Recent M&A studies on human issues frequently call upon the 'merger syndrome' as a typical post-merger phenomenon and a concept used to describe the - usually negative - effects on the attitudes and behaviour of employees in the affected organizations. Interestingly, although mergers and acquisitions are considered highly emotional events, research on the emotional dimension of these events is still rare, especially as far as cross-border activities are concerned. Combining theory-based reasoning and inductive data-interpretation, this paper explores, analyses and discusses the role of emotions in mergers and acquisitions. Drawing on elements provided by cognitive appraisal theory, affective events theory, the literature on the merger syndrome, and qualitative in-depth interviews with employees, this paper introduces an analytical framework for investigating the role of emotions in international mergers and acquisitions. The qualitative analysis of four cross-border M&A cases focuses on the impact of managerial communication and behaviour on employee emotions, behaviour, and performance. In the final section we discuss the implications of the findings for management.

Suggested Citation

  • Sinkovics, Rudolf R. & Zagelmeyer, Stefan & Kusstatscher, Verena, 2011. "Between merger and syndrome: The intermediary role of emotions in four cross-border M&As," International Business Review, Elsevier, vol. 20(1), pages 27-47, February.
  • Handle: RePEc:eee:iburev:v:20:y:2011:i:1:p:27-47
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    References listed on IDEAS

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    1. Russ Vince, 2006. "Being Taken Over: Managers' Emotions and Rationalizations During a Company Takeover," Journal of Management Studies, Wiley Blackwell, vol. 43(2), pages 343-365, March.
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    Cited by:

    1. Gunkel, Marjaana & Schlaegel, Christopher & Rossteutscher, Tobias & Wolff, Birgitta, 2015. "The human aspect of cross-border acquisition outcomes: The role of management practices, employee emotions, and national culture," International Business Review, Elsevier, vol. 24(3), pages 394-408.
    2. Reynolds (née Schnurr), Noelia-Sarah & Teerikangas, Satu, 2016. "The international experience in domestic mergers – Are purely domestic M&A a myth?," International Business Review, Elsevier, vol. 25(1), pages 42-50.
    3. Ahammad, Mohammad Faisal & Tarba, Shlomo Y. & Liu, Yipeng & Glaister, Keith W. & Cooper, Cary L., 2016. "Exploring the factors influencing the negotiation process in cross-border M&A," International Business Review, Elsevier, vol. 25(2), pages 445-457.
    4. Durand, Muriel, 2016. "Employing critical incident technique as one way to display the hidden aspects of post-merger integration," International Business Review, Elsevier, vol. 25(1), pages 87-102.
    5. Reddy, Kotapati Srinivasa, 2015. "Determinants of Cross-border Mergers and Acquisitions: A Comprehensive Review and Future Direction," MPRA Paper 63969, University Library of Munich, Germany, revised 2015.
    6. Reddy, Kotapati Srinivasa, 2015. "The State of Case Study Research in Mergers & Acquisitions: A Review of the Literature in Different Management Streams," MPRA Paper 63939, University Library of Munich, Germany, revised 2015.
    7. Lee, Sung-Jun & Kim, Joongwha & Park, Byung Il, 2015. "Culture clashes in cross-border mergers and acquisitions: A case study of Sweden's Volvo and South Korea's Samsung," International Business Review, Elsevier, vol. 24(4), pages 580-593.
    8. Rao-Nicholson, Rekha & Khan, Zaheer & Stokes, Peter, 2016. "Making great minds think alike: Emerging market multinational firms’ leadership effects on targets’ employee psychological safety after cross-border mergers and acquisitions," International Business Review, Elsevier, vol. 25(1), pages 103-113.

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    Keywords

    Acquisition Culture Emotion Merger;

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