Yaakov Weber

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.

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 ...

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...

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.

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.

Integrating organizational and human behavior perspectives on mergers and acquisitions: Looking inside the black box

This article presents a conceptual framework for investigating merger and acquisition (M&A) performance through a multistage and multilevel approach. First, human resource challenges during the integration process following a merger are explored to help explain the inconsistencies among empirical findings about the effects of cultural differences on M&A performance. It is proposed that in addition to culture clash, organizational identification with the merger has a direct effect on acquired management attitudes and behaviors, thereby influencing postmerger success. We also elaborate how organizational identity acts to moderate the effects of culture clash in M&As, thus explaining contradictory findings in the literature. To conclude, we discuss the implications of our work for future research and managerial practices.

The effects of culture clash on international mergers in the high tech industry

The present paper presents a case study of a merger between Israeli and British high-tech companies and illustrates the effect that the choice of post-merger integration approach has on the success or failure of a cross-border merger and acquisition. The study extends existing knowledge of cross-cultural management in international high-tech mergers by analysing the effects of cultural differences on the effectiveness of the symbiosis integration approach.

Negotiation, Cultural Differences, and Planning in Mergers and Acquisitions

Mergers and acquisitions (M&As) have proven to be a significant and increasingly popular strategy used by a large number of firms in many regions across the globe despite the consistent evidence on negative post-merger performance. While many studies focus on the pre-merger stage, the literature on post-merger integration processes is limited and it is rarely possible to find a study on the negotiation stage. The article explores the crucial yet neglected factors that influence negotiation outcomes. It provides a theoretical framework that provides opportunities for systematic research on the relationships between cultural differences, negotiation planning, and their interrelationship, and on negotiation outcomes.