Shlomo Yedidia Tarba

A Model of the Influence of Culture on Integration Approaches and International Mergers and Acquisitions Performance

An extensive body of literature has suggested that the influence of culture on the postmerger integration process and mergers and acquisitions (M&A) performance is critical. However, the results of empirical studies are contradictory and confusing. In fact, the combined effects of corporate culture, national culture, and synergy potential on various integration approaches, as well as their influence on M&A performance, have never been simultaneously investigated. This study aims to fill this gap and to develop a theoretical model using a multidisciplinary approach that draws upon the literature from strategic management, international management, and anthropology. Furthermore, unlike most studies that focus on a single stage of M&A, this study combines variables of pre- and postmerger stages.

HR practices during post-merger conflict and merger performance

An extensive body of literature has investigated financial and strategic variables as predictors of mergers and acquisitions (M&A) performance without finding clear relationships. The literature does not investigate remedies for conflicts in M&A. This paper aims to develop a knowledge-based theory of M&A integration, drawing upon research on HR practices in M&A, the resource-based view of the firm, and international management. The study also explores the critical differences between acquirers from various countries in the way in which human resources are managed during cross-cultural conflict situations, and tests the relationships between HR practices and post-merger performance in multiple countries. The findings show that there is no clear best practice to address the conflict situation and enhance M&A performance.

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.

Mergers and acquisitions performance paradox: the mediating role of integration approach

Based on theory and case studies, the merger literature suggests that the implementation of integration approaches is important for effective post-merger integration. This hypothesis is tested with a relatively large sample by focusing on the fit of the integration approach to the synergy potential of the merged companies and the cultural differences between them. Findings suggest that the fit of the integration approach is positively related to integration effectiveness and mediates its relationship with synergy potential and cultural differences.

Exploring integration approach in related mergers

Purpose – In mergers and acquisitions (M&As) the culture of the acquired organization often represents a counterculture for the acquiring firm. The purpose of this paper is to present a case study of an acquisition of German FAST by the Israeli firm Aladdin, and exemplifies the post‐merger integration issues that arose as a result of the culture clash between amalgamating entities in the high‐tech industry.Design/methodology/approach – The study used a qualitative research design because of the need for in‐depth understanding of the processes, local contextualization, causal inference, and the necessity to expose the points of view of the participants. Triangulation was one of the important means of increasing construct validity and substantiating findings and propositions.Findings – The case study analysis covers the processes that affect M&A performance and elucidates a significance of the post‐merger integration approach that is implemented in cross‐border M&As.Practical implications – The examination ...

The effect of leadership style on talent retention during Merger and Acquisition integration: evidence from China

Leadership and talent retention are critical HR-related components in post-merger and acquisition (M&A) integration, but the extent to which these factors interact with each other and eventually contribute to the success of post-M&A integration is under-explored. The present study investigates the effect of leadership styles on talent retention strategies and on the effectiveness of post-M&A integration in a Chinese context. Based on in-depth examination of an M&A case study, we propose that an authoritative, coaching, task-focused and relationship-focused approach has a positive influence on talent retention and effective post-M&A integration in a Chinese context. As far as talent retention strategies are concerned, authoritative leaders use communication, whereas leaders adopting a coaching style use an incentive structure to positively influence talent retention. Furthermore, task-focused leaders use position and performance in order to identify and retain talented employees. By contrast, relationship-focused leaders emphasize the guanxi network, communication and an incentive structure in their strategies of talent retention.

Mergers and acquisitions process: the use of corporate culture analysis

Purpose – The purpose of this paper is to advance cross‐cultural management during mergers and acquisitions (M&A), an issue that remains poorly understood despite a large body of literature accumulated over many years of study and experience.Design/methodology/approach – Based on literature review and case studies of both successful and unsuccessful companies, this paper clarifies the concept, the assessment and the use of corporate culture and its dimensions during all mergers and acquisitions stages, and as such shows its role as an important and influential milestone in the international business environment exploration.Findings – The paper arrives at the conclusion that the enduring paradox of the high rate of M&A failure vs the growing activity of M&A may be due to lack of synchronized activities of all merger stages.Practical implications – The paper presents frameworks and managerial tools that can help researchers and practitioners conduct better corporate culture assessment during all stages of t...

Unmasking Integration Challenges: The Case of Biogal's Acquisition by Teva Pharmaceutical Industries

Management researchers and practitioners point out that integration processes during the postmerger integration period are critical to synergistic effects and performance of the merged companies over time. However, the relation between the postmerger integration process, synergy potential exploitation, and its influence on mergers and acquisitions (M&A) deal success, especially in the case of international M&As, is not clear. Moreover, the results of empirical studies are inconsistent and even contradictory. Propositions regarding the postmerger integration process are presented in this paper and are exemplified by an in-depth exploration of Hungarian Biogals acquisition by Israeli Teva Pharmaceutical Industries employing the narrative approach. In the discussion section, an analysis of the case in light of the propositions is presented, and further avenues for research are suggested.Management researchers and practitioners point out that integration processes during the postmerger integration period are criti- cal to synergistic effects and performance of the merged companies over time. However, the relation between the postmerger integration process, synergy potential exploitation, and its influence on mergers and acquisi- tions (M&A) deal success, especially in the case of international M&As, is not clear. Moreover, the results of empirical studies are inconsistent and even contradictory. Propositions regarding the postmerger integration process are presented in this paper and are exemplified by an in-depth exploration of Hungarian Biogals acquisition by Israeli Teva Pharma- ceutical Industries employing the narrative approach. In the discussion section, an analysis of the case in light of the propositions is presented, and further avenues for research are suggested.

Strategic Agility: A State of the Art

In a chaotic environment in which markets emerge, collide, split, evolve, and die, one of the primary determinants of a firms success is strategic agility, the ability to remain flexible in facing new developments, to continuously adjust the companys strategic direction, and to develop innovative ways to create value. The competitive landscape has been shifting in recent years more than ever. Globalization, rapid technological change, codification of knowledge, the internet, talent and employee mobility, increased rates of knowledge transfer, imitation, changes in customer tastes, and the obsolescence of products and business models have all caused a turbulent environment and accelerated changes and disruptions. These trends are expected to continue, producing ever more rapid and unpredictable changes. Current concepts such as sustained competitive advantage, resource-based view, and strategic planning have been deemed vague, tautological, and inadequate for companies to cope with the rate and complexity of environmental and market changes.1 There are tensions between formal processes of strategic planning and opportunistic strategic agility. Strategic planning has been criticized for preparing plans for tomorrow based on yesterdays actions, concepts, and tools. Although strategic planning can help in specific situations, it usually creates an inertia that prevents fast adaptation when circumstances change or market discontinuities occur. There is an agreement on the importance of strategic agility in light of complex managerial challenges such as dynamic environment, globalization, accelerating rate of innovation, and mergers and acquisitions (as mentioned by Jack Welch).2 Strategic agility requires inventing new business models and new categories rather than rearranging old products and categories. To cope with growing strategic discontinuities and disruptions, scholars have suggested the creation of strategically agile companies, including new ways for managing business transformation and renewal, developing dynamic capabilities, creating imitation abilities, maintaining a high level of organizational flexibility and ambidexterity, developing learning and …

Top management retention in cross-border acquisitions: the roles of financial incentives, acquirer's commitment and autonomy

Using data from a sample of Cross-Border Acquisitions (CBAs) made by UK firms, the present paper investigates the determinants of top management retention in CBAs. Applying both the theory of relative standing and the financial incentive mechanism of retention, we find that post-acquisition autonomy of the acquired firm and the acquirer’s commitment to the acquired organisation significantly affect top management retention. By contrast, and contrary to conventional wisdom, when interacting with other variables financial incentives may have a negative effect on top management retention. The managerial implications of the findings and directions for future research are also discussed.