Resilience and risks of cross-border mergers and acquisitions

2019 ◽  
Vol 27 (4) ◽  
pp. 427-450 ◽  
Author(s):  
Ching-Chiu Hsu ◽  
Jeong-Yang Park ◽  
Yong Kyu Lew
Keyword(s):  
Risk Management ◽  
Mergers And Acquisitions ◽  
Mobile Phone ◽  
Design Methodology ◽  
Organizational Resilience ◽  
Acquisition Performance ◽  
Content Type ◽  
Cross Border ◽  
Multiple Risks ◽  
Target Firms

Purpose In cross-border mergers and acquisitions (M&As), acquirers often fail to achieve the expectations they held when they made the M&A deals. This paper aims to propose that the risks of cross-border M&As can be mitigated by building and cultivating organizational resilience as a prime means of risk management. Design/methodology/approach The research examines risks associated with cross-border M&A and how such risks can be mitigated by developing resilience. It presents dual cases of acquisitions of the biggest branded mobile phone manufacturer in Taiwan. Findings The authors find that the acquirer faces multiple risks in cross-border M&A transactions, including financial, strategic and organizational, and process risks that arise from misalignment between the goal of the M&As and the post-acquisition performance of the target firms. Originality/value The research provides theoretical insights on organizational resilience and how it can mitigate the specific risks involved in cross-border M&As, thereby developing coherent organizational resilience processes.

scholarly journals Antecedents of marketing integration in cross-border mergers and acquisitions

2015 ◽  
Vol 32 (1) ◽  
pp. 2-28 ◽  
Author(s):  
Rudolf R. Sinkovics ◽  
Noemi Sinkovics ◽  
Yong Kyu Lew ◽  
Mohd Haniff Jedin ◽  
Stefan Zagelmeyer
Keyword(s):  
Mergers And Acquisitions ◽  
Design Methodology ◽  
Negative Relationship ◽  
Cultural Integration ◽  
Management Styles ◽  
Content Type ◽  
Cross Border ◽  
Operational Level ◽  
Marketing Resources ◽  
Resource Combination

Purpose – The purpose of this paper is to examine operational-level implementation issues regarding mergers and acquisitions (M&As) in general, and resource combination and integration at the functional marketing level in particular. Design/methodology/approach – The paper introduces four factors (i.e. collaboration, interaction, marketing synergy, and the realignment of marketing resources) that support successful M&A marketing integration and enhance overall M&A performance. Findings – The results indicate that marketing synergy and the realignment of marketing resources contribute significantly to the extent of integration. At the same time, the authors find a significant but negative relationship between the interaction dimension and the speed of integration. Originality/value – The cultural integration of firms that feature different management styles and organizational cultures has been recognized as a particularly challenging aspect of cross-border M&As. This study explains factors that contribute to effective marketing integration in M&As.

Mergers and acquisitions: a review. Part 1

2016 ◽  
Vol 33 (1) ◽  
pp. 147-188 ◽  
Author(s):  
Reza Yaghoubi ◽  
Mona Yaghoubi ◽  
Stuart Locke ◽  
Jenny Gibb
Keyword(s):  
Mergers And Acquisitions ◽  
Value Creation ◽  
Design Methodology ◽  
Empirical Studies ◽  
Relevant Literature ◽  
Acquisition Performance ◽  
Content Type ◽  
Number Of Factors ◽  
Self Interest ◽  
Target Characteristics

Purpose – This paper aims to review the relevant literature on mergers and acquisitions in an attempt to provide a comprehensive account of what we know about mergers and which parts of the puzzle are still incomplete. Design/methodology/approach – This literature review consists of three key sections. The first part of this paper summarises the literature on the cyclical nature of mergers referred to in the literature as merger waves. The second section reviews the causes and consequences of takeovers; it first reviews the causes, or drivers, of acquisitions, while focusing on the fact that acquisitions happen in waves and then reviews the consequences of takeovers, with a predominant focus on the impacts of mergers on the economic performance of acquirers. The third part of the review summarises the theories as well as previous empirical studies on determinants of announcement returns and post-acquisition performance of combined firms. Findings – Merger activity demonstrates a wavy pattern, i.e. mergers are clustered in industries through time. The causes suggested for this fluctuating pattern include industry and economy-level shocks, mis-valuation and managerial herding. Market reaction to announcement of acquisitions is, on average, slightly negative for acquirer stocks and significantly positive for target stocks. The combined abnormal return is positive. These findings have been consistent over several decades of investigation. The prior research also identifies a number of factors that are related to performance of acquisitions. These factors are categorised and reviewed in five different groups: acquirer characteristics, target characteristics, bid characteristics, industry characteristics and macro-environment characteristics. Originality/value – This review illustrates a number of issues. Prior research is heavily biased towards gains to acquirers and factors that affect these gains. It is also biased towards finding sources of value creation through mergers, despite the fact that several theories suggest that mergers can be value-destroying. In fact, value destruction is often attributed to managers’ self-interest (agency problem) and mistakes (hubris). However, the mechanisms through which mergers destroy value are rarely addressed. Aside from that, the possibility of simultaneous creation and destruction of value in acquisitions is not often considered. Finally, after several decades of investigation, a key question is not completely answered yet: “What are the sources of value in mergers and acquisitions?”

Organizational unlearning and knowledge transfer in cross-border M&A: the roles of routine and knowledge compatibility

2017 ◽  
Vol 21 (6) ◽  
pp. 1580-1595 ◽  
Author(s):  
Xiangyang Wang ◽  
Yujuan Xi ◽  
Jingsi Xie ◽  
Yingxin Zhao
Keyword(s):  
Theoretical Model ◽  
Knowledge Transfer ◽  
Mergers And Acquisitions ◽  
Design Methodology ◽  
Direct Influence ◽  
Content Type ◽  
Cross Border ◽  
Congruence Theory ◽  
Medium Level ◽  
Practical Implications

Purpose The purpose of this study is to adopt the perspective of congruence to explore how organizational unlearning facilitates knowledge transfer in cross-border mergers and acquisitions (M&A). Design/methodology/approach Drawing on the congruence theory, this study built a theoretical model and examined it with survey data from 212 firms in China. Findings Organizational unlearning has no direct influence on knowledge transfer. In contrast, it promotes knowledge and routine compatibility that facilitate knowledge transfer. Routine and knowledge compatibility have different mechanisms on knowledge transfer. Specifically, the higher routine compatibility, the more effective is knowledge transfer. When knowledge compatibility is at a medium level, the effectiveness of knowledge transfer is optimal. Practical implications Firms should regard organizational unlearning as a crucial facilitator to knowledge and routine compatibility that promote knowledge transfer. Originality/value This study provides a specific understanding of the relationships between organizational unlearning and knowledge transfer by focusing on knowledge and routine compatibility as the crucial links, and enriches existing literature regarding knowledge transfer.

Mergers and acquisitions: a review (part 2)

2016 ◽  
Vol 33 (3) ◽  
pp. 437-464 ◽  
Author(s):  
Reza Yaghoubi ◽  
Mona Yaghoubi ◽  
Stuart Locke ◽  
Jenny Gibb
Keyword(s):  
Mergers And Acquisitions ◽  
Value Creation ◽  
Design Methodology ◽  
Empirical Studies ◽  
Relevant Literature ◽  
Acquisition Performance ◽  
Content Type ◽  
Number Of Factors ◽  
Self Interest ◽  
Target Characteristics

Purpose This paper aims to review the relevant literature on mergers and acquisitions in an attempt to provide a comprehensive account of what we know about mergers and which parts of the puzzle are still incomplete. Design/methodology/approach This literature review consists of three key sections. The first part of this paper summarises the literature on the cyclical nature of mergers referred to in the literature as merger waves. The second section reviews the causes and consequences of takeovers; it first reviews the causes, or drivers, of acquisitions, while focusing on the fact that acquisitions happen in waves and then reviews the consequences of takeovers, with a predominant focus on the impacts of mergers on the economic performance of acquirers. The third part of the review summarises the theories, as well as previous empirical studies, on determinants of announcement returns and post-acquisition performance of combined firms. Findings Merger activity demonstrates a wavy pattern, i.e. mergers are clustered in industries through time. The causes suggested for this fluctuating pattern include industry- and economy-level shocks, mis-valuation and managerial herding. Market reaction to announcement of acquisitions is, on average, slightly negative for acquirer stocks and significantly positive for target stocks. The combined abnormal return is positive. These findings have been consistent over several decades of investigation. Prior research also identifies a number of factors that are related to performance of acquisitions. These factors are categorised and reviewed in five different groups: acquirer characteristics, target characteristics, bid characteristics, industry characteristics and macro-environment characteristics. Originality/value This review illustrates a number of issues. Prior research is heavily biased towards gains to acquirers and factors that affect these gains. It is also biased towards finding sources of value creation through mergers despite the fact that several theories suggest that mergers can be value-destroying. In fact, value destruction is often attributed to managers’ self-interest (agency problem) and mistakes (hubris). However, the mechanisms through which mergers destroy value are rarely addressed. Aside from that, the possibility of simultaneous creation and destruction of value in acquisitions is not often considered. Finally, after several decades of investigation, a key question is not completely answered yet: “What are the sources of value in mergers and acquisitions?”

Navigating the human landscape in cross-border mergers and acquisitions

2016 ◽  
Vol 32 (9) ◽  
pp. 11-14
Author(s):  
Gordon D. Ray
Keyword(s):  
Mergers And Acquisitions ◽  
Design Methodology ◽  
Due Diligence ◽  
Open Communication ◽  
Content Type ◽  
Cross Border ◽  
Implementation Stages ◽  
Pertinent Information ◽  
Human Landscape ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Developing individual relationships to drive multilateral, open communication, has the greatest power to connect all levels of an organization to a unifying strategy. This should be a primary consideration in both the due diligence and implementation stages of a cross-border merger/acquisition to ensure a successful transition. The organization considering/executing the merger/acquisition should look inward first, to its own practices, to make necessary adjustments and establish a foundation for integration. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Post-acquisition control strategy and cross-border acquisition performance of Chinese MNEs: a fsQCA approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qi Yue ◽  
Ping Deng ◽  
Yanyan Cao ◽  
Xing Hua
Keyword(s):  
Fuzzy Set ◽  
Control Strategy ◽  
Multinational Enterprises ◽  
Cultural Distance ◽  
Emerging Market ◽  
Complex Nature ◽  
Acquisition Performance ◽  
Content Type ◽  
Cross Border ◽  
Chinese Mnes

PurposePost-acquisition control is a crucial factor affecting acquisition performance. We investigate how post-acquisition control strategy affects cross-border acquisition performance of Chinese multinational enterprises (MNEs) through a configurational perspective.Design/methodology/approachBased on 70 cross-border acquisition cases by Chinese MNEs, we adopt fuzzy-set qualitative comparative analysis (fsQCA) to study the combined effects of strategic control, operational control, institutional distance, cultural distance, relative capacity and business relatedness on the cross-border acquisition performance.FindingsOn the basis of fuzzy set analysis of multiple interdependent factors, we identify six configurations that are conductive to achieving high cross-border acquisition performance and two configurations that relate to the absence of high performance, thus shedding light on the casually complex nature of performance drivers of acquisitions.Originality/valueThis study provides a holistic, configurational approach to investigating cross-border acquisition performance by emerging market firms. Our results provide some compelling evidence that accounts for the causal complexity of post-acquisition control strategies and acquisition outcomes in the context of emerging economies.

scholarly journals Stop going around in circles: towards a reconceptualisation of disaster risk management phases

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lee Bosher ◽  
Ksenia Chmutina ◽  
Dewald van Niekerk
Keyword(s):  
Risk Management ◽  
Design Methodology ◽  
Disaster Risk ◽  
Disaster Risk Management ◽  
Review Of The Literature ◽  
Content Type ◽  
End Point ◽  
Management Concept ◽  
Conceptual Paper ◽  
Disaster Event

PurposeThe way that disasters are managed, or indeed mis-managed, is often represented diagrammatically as a “disaster cycle”. The cyclical aspects of the disaster (risk) management concept, comprised of numerous operational phases, have, in recent years, been criticised for conceptualising and representing disasters in an overly simplistic way that typically starts with a disaster “event” – and subsequently leads onto yet another disaster. Such cyclical thinking has been proven to not be very useful for the complexities associated with understanding disasters and their risks. This paper aims to present an alternative conceptualisation of the Disaster Risk Management phases, in a way that can better factor in the underlying root causes that create differential levels of vulnerability.Design/methodology/approachThis is a conceptual paper developed, through a review of the literature and discussions between the authors, as a counterpoint to the pervasive “disaster cycle”.FindingsThe “Disaster Risk Management (DRM) Helix” is presented as an alternative way of conceptualising the DRM phases. The helictical conceptualisation of DRM phases presented in this paper is intentionally presented to start a discussion (rather than as an end point) on how best to move away from the constraints of the “disaster cycle”.Originality/valueIt is envisaged that the helictical conceptualisation of DRM can be suitably malleable to include important factors such as temporal considerations and the underlying root causes that create differential levels of vulnerability. It is, thus, the intention that the DRM Helix can provide a catalyst for exciting discussions and future adaptations of the diagram that can better capture the dynamic (non-cyclical) nature of disasters and their root causes.

Cross-Border Mergers and Acquisitions and the Competitive Positioning of European National Industries

1997 ◽  
Vol 2 (4) ◽  
pp. 359-390
Author(s):  
Massimo G. Colombo ◽  
Sergio Mariotti
Keyword(s):  
Mergers And Acquisitions ◽  
Statistical Tests ◽  
Foreign Direct Investments ◽  
Competitive Advantages ◽  
Competitive Position ◽  
Cross Border ◽  
Target Firms ◽  
Eclectic Paradigm ◽  
International Oligopoly ◽  
Tests Of Hypotheses

This paper relies on the eclectic paradigm of foreign direct investments and Porter's theory on the competitive advantages of nations to study the localisation of target firms of international M&As by European enterprises. Firms' propensities towards extra- and infra-European acquisitions are correlated with the competitive position of European national industries in the international arena. Strategic groups of national industries are created through a cluster analysis based on the Fortune lists of the 500 world largest enterprises. Logit econometric estimates and statistical tests of hypotheses suggest that the share of extra-European acquisitions is greater in a) sectors where European large firms have achieved leadership of the world oligopoly, and b) sectors where the competitive position of Europe is rather weak though stable. Instead, firms belonging to national industries which have been rapidly increasing their share of the international oligopoly during the ′80s concentrate their M&As within Europe. The same holds true for declining weak competitors.

Knowledge of the good Samaritan drug overdose act and possession of a naloxone kit among people recently released from prison

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Katherine E. McLeod ◽  
Jessica Xavier ◽  
Ali Okhowat ◽  
Sierra Williams ◽  
Mo Korchinski ◽  
...  
Keyword(s):  
At Risk ◽  
Mobile Phone ◽  
Drug Overdose ◽  
Design Methodology ◽  
Discharge Planning ◽  
Correctional Facilities ◽  
Mentoring Program ◽  
Content Type ◽  
Good Samaritan ◽  
Standard Component

Purpose This study aims to describe knowledge of Canada’s Good Samaritan Drug Overdose Act (GSDOA) and take home naloxone (THN) training and kit possession among people being released from provincial correctional facilities in British Columbia. Design/methodology/approach The authors conducted surveys with clients of the Unlocking the Gates Peer Health Mentoring program on their release. The authors compared the characteristics of people who had and had not heard of the GSDOA and who were in possession of a THN kit. Findings In this study, 71% people had heard of the GSDOA, and 55.6% were in possession of a THN kit. This study found that 99% of people who had heard of the GSDOA indicated that they would call 911 if they saw an overdose. Among people who perceived themselves to be at risk of overdose, 28.3% did not have a THN kit. Only half (52%) of participants had a mobile phone, but 100% of those with a phone said they would call 911 if they witnessed an overdose. Originality/value The authors found that people with knowledge of the GSDOA were likely to report that they would call 911 for help with an overdose. Education about the GSDOA should be a standard component of naloxone training in correctional facilities. More than one in four people at risk of overdose were released without a naloxone kit, highlighting opportunities for training and distribution. Access to a cellphone is important in enabling calls to 911 and should be included in discharge planning.

Business uncertainties for emerging contractors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Risk Management ◽  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Cutting Edge ◽  
Content Type ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Emerging contractor firms face significant challenges which threaten the survival of their business. Through a focus on risk management and other strategies, such companies can better ascertain and manage risks to achieve profitability and growth. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Sign in / Sign up

Export Citation Format

Share Document