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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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    Cited by:

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    7. 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.
    8. Moore, Fiona, 2012. "Identity, knowledge and strategy in the UK subsidiary of an Anglo-German automobile manufacturer," International Business Review, Elsevier, vol. 21(2), pages 281-292.
    9. Muhammad Waseem Bari & Muhammad Abrar & Mohsin Bashir & Sajjad Ahmad Baig & Meng Fanchen, 2019. "Soft Issues During Cross-Border Mergers and Acquisitions and Industry Performance, China–Pakistan Economic Corridor Based View," SAGE Open, , vol. 9(2), pages 21582440198, April.
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    11. 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.
    12. Cristian Dîrvă & Anda Simona Rădulescu, 2018. "Managing Resilience to Change in Merger and Acquisitions," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 21(68), pages 145-160, June.
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    16. Thor Sigfusson & Simon Harris, 2012. "The relationship formation paths of international entrepreneurs," Journal of International Entrepreneurship, Springer, vol. 10(4), pages 325-349, December.
    17. 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.
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    19. 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.
    20. 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.
    21. Hassett, Melanie E. & Reynolds, Noelia-Sarah & Sandberg, Birgitta, 2018. "The emotions of top managers and key persons in cross-border M&As: Evidence from a longitudinal case study," International Business Review, Elsevier, vol. 27(4), pages 737-754.
    22. Richard Oloruntoba & Gazi Farid Hossain & Beverly Wagner, 2019. "Theory in humanitarian operations research," Annals of Operations Research, Springer, vol. 283(1), pages 543-560, December.

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