Riikka M. Sarala

The Impact of Organizational and National Cultural Differences on Social Conflict and Knowledge Transfer in International Acquisitions

The purpose of this paper is to elucidate the effects of organizational and national cultural differences on international acquisitions. We argue that cultural differences prompt social identity building that leads to ‘us versus them’ thinking and thereby creates the potential for social conflict. We also maintain that the same cultural differences can contribute to learning in terms of knowledge transfer. We develop a structural equation model to test these hypothesized effects on a sample of related international acquisitions. Our analysis shows that cultural differences at the organizational level are positively associated with social conflict, but that national cultural differences can decrease social conflict. Furthermore, both organizational and national cultural differences are positively associated with knowledge transfer. This analysis shows the importance of disentangling the various effects that cultural differences have on international acquisitions. It also suggests that national cultural differences are less of a problem in international acquisitions than is usually assumed.

A Sociocultural Perspective on Knowledge Transfer in Mergers and Acquisitions

Sociocultural factors are important determinants of merger and acquisition (M&A) outcomes. Despite advances in this field, our understanding of sociocultural factors in M&As remains incomplete. In particular, the roles of sociocultural interfirm linkages, HR flexibility, and organizational cultural differences in M&As require further elucidation. The present article contributes to the M&A literature by further clarifying the multifaceted role of these sociocultural factors in M&As. We suggest that sociocultural interfirm linkages (complementary employee skills, trust, collective teaching, and cultural integration) between the merging firms influence the level of knowledge transfer in M&As. Furthermore, we argue that HR flexibility (flexibility in employee skills, flexibility in employee behavior, and flexibility in HR practices) is vital for the development of the above-mentioned sociocultural interfirm linkages in M&As. Finally, we maintain that organizational cultural differences are important antecedents of HR flexibility in M&As.

Opposite Ends of the Same Stick? Multi-Method Test of the Dimensionality of Individualism and Collectivism

The construct of individualism–collectivism (IND-COL) has become the definitive standard in cross-cultural psychology, management, and related fields. It is also among the most controversial, in particular, with regard to the ambiguity of its dimensionality: Some view IND and COL as the opposites of a single continuum, whereas others argue that the two are independent constructs. We explored the issue through seven different tests using original individual-level data from 50 studies and meta-analytic data from 149 empirical publications yielding a total of 295 sample-level observations that were collected using six established instruments for assessing IND and COL as separate constructs. Results indicated that the dimensionality of IND-COL may depend on (a) the specific instrument used to collect the data, (b) the sample characteristics and the cultural region from which the data were collected, and (c) the level of analysis. We also review inconsistencies, deficiencies, and challenges of conceptualizing IND-COL and provide guidelines for developing and selecting instruments for measuring the construct, and for reporting and meta-analyzing results from this line of research.

The Role of Strategic Agility in Acquisitions

The aim of the present study is to examine the role of strategic agility as a component of the acquisition process by investigating its constituent elements and effects on knowledge transfer in the context of acquisitions. The study also elaborates on the relationship between knowledge transfer and performance in acquisitions. We test our theoretical model on a quantitative data set of acquisitions conducted by Finnish companies.

Causal ambiguity, cultural integration and partner attractiveness as determinants of knowledge transfer: evidence from Finnish acquisitions

This study aims to explain knowledge transfer in acquisitions by examining the impact of causal ambiguity of knowledge, partner attractiveness and organisational cultural integration (convergence and crossvergence). We test our model on quantitative data from domestic and international acquisitions conducted by Finnish companies. The results provide evidence for a negative influence of causal ambiguity and for a positive impact of partner attractiveness and organisational cultural integration. The findings also show that causal ambiguity can moderate the effects of partner attractiveness and organisational cultural integration.

The Role of Leadership in Mergers and Acquisitions: A Review of Recent Empirical Studies

In this chapter, we examine the role of M&A (mergers and acquisitions) leadership by conducting a review of recent empirical studies on M&A leadership. Our aim is to provide an overview of the current state of knowledge concerning M&A leadership. More specifically, we examine how M&A leadership has been studied (i.e., study methods, data sources), where M&A leadership has been studied (i.e., geographic distribution, industries, level of analysis), which leadership M&A outcomes and M&A leadership perspectives have been examined, and finally, how M&A leadership influences post-M&A outcomes. This allows us to identify main areas of interest and provide suggestions for further research.

Human Side of Collaborative Partnerships: A Microfoundational Perspective

The research on collaborative partnerships has accumulated a vast body of knowledge, which has assisted us with comprehending several complex organizational phenomena, including mergers and acquisitions, strategic alliances, joint ventures, and entrepreneurial partnerships. Yet, the existing studies have not paid sufficient attention to the human side factors. We join the current conversation within the microfoundations perspective of management and organization studies by suggesting that investigating the human side factors as the microfoundations of collaborative partnerships can advance our collective understanding of the phenomena in important ways. This article has three general objectives. First, we show that collaborative partnerships have been a long-standing issue in management and organization studies and provide an overview of the puzzles that informed and motivated this special issue. Second, we highlight the key insights and contributions of the articles included in this special issue by reviewing their theoretical underpinnings, methodological approaches, and findings. Finally, we outline a future research agenda on the human side of collaborative partnerships that can help advance management and organization studies.

The Role of Target Firm Power in M&A Knowledge Transfer

Abstract This study examines the role of target firm power in mergers and acquisitions (M&As). We investigate the effects of the position, referent and expert bases of power of the target firm on reverse knowledge transfer. We test our hypotheses on a sample of 123 responses from 106 domestic and foreign acquisitions conducted by Finnish companies. We find that a moderate level of target firm power supports reverse knowledge transfer. Also, we show that referent and expert bases of power are particularly important in explaining the overall degree of target firm power. This study contributes to the M&A literature by elaborating on the role of target firm power.