Conflicts, trust toward the acquirer from emerging economies and post-acquisition cooperation intention

PurposeThe purpose of this paper is to examine the impact of inter-group conflicts on the trust toward the acquirer and then further on cooperation intention after acquisitions in cross-border mergers and acquisitions (M&As), in the lens of the social classification theory. Two types of conflicts (realistic conflicts and symbolic conflicts) and a mediating mechanism (trust toward the acquirer) exhibit different effects on cooperation intention. The research further examines two moderating coping strategies (localizing management and assigning trustworthy expatriate managers) and tests their effectiveness in promoting trust toward the acquirer and increasing cooperation intention in cross-border M&As.Design/methodology/approachThe research hypotheses were empirically tested in the context of post-acquisition of Chinese companies' cross-border M&As. In total, 600 questionnaires were provided to the research participants of 37 acquired firms/units from advanced economies of 12 Chinese companies, and 209 valid questionnaires were collected (the response rate is 34.83%). Confirmatory factor analysis was conducted to verify data validity and hierarchical multiple regression analyses were employed to test relational and moderating effects.FindingsThis research demonstrates that both realistic and symbolic conflicts can reduce the intention to cooperate, but the latter does not have a significant influence. The results also uncover that whether employees from acquired firms trust in their acquirers mediates the relationship between realistic conflicts and cooperation intention. Moreover, management localization (a measurement of whether local/original managers are retained with a high degree of freedom and autonomy after M&As) and trustworthiness of expatriate managers (a measurement of whether the assigned expatriate managers is trustworthy) positively moderate the relation between realistic conflicts and trust toward the acquirer. In addition, trust toward the acquirer mediates the interaction of realistic conflicts and management localization on the cooperation intention of the acquirers' employees.Originality/valueThis study examines how inter-organizational conflicts influence trust toward the acquirer and then cooperation intentions in the context of Chinese companies' M&A behavior of targets from developed countries and gain supportive evidence, which enriches the literature on the management of international M&As. By introducing two management localization and trustworthiness of expatriate managers into the model, the research deepens our knowledge of how to build trust toward the acquirer in cross-border M&As.

Moderating effects of decision autonomy and culture novelty on the relationship between expatriate manager leadership styles and host country managers’ job satisfaction: Evidence from the global hotel industry

While the use of expatriate managers to control and manage the foreign subsidiary is well recognized, there is a paucity of literature that considers how expatriate managers’ leadership behaviors affect host country nationals (HCNs). By incorporating leadership contingency perspective into expatriation literature, we examine the boundary conditions of two leadership (planning and consulting) behaviors on HCN managers’ job attitude (i.e., job satisfaction). Specifically, we investigate the moderating effects of decision autonomy and culture novelty of expatriate managers on the aforementioned relationships, using survey data collected from 103 expatriate general managers and 276 HCN managers working in nine American-based multinational hotel chains and found both planning and consulting leadership behaviors to be positively related to HCN managers’ job satisfaction. Decision autonomy and culture novelty acted as boundary conditions of such relationships such that decision autonomy moderated the planning-job satisfaction relationship while culture novelty moderated the consulting-job satisfaction relationship.

Benefits and challenges for Malaysian hotels when employing foreign workers and interns

Purpose In Malaysia, globalization has increased the number of multinational hotel chains and independent five-star hotels employing foreign professionals, interns and labourers. This study aims to explore the benefits and challenges for hotels of the many foreigners working in Malaysia. Design/methodology/approach Semi-structured interviews were conducted with Malaysian hotel managers concerning employment of foreign workers. Findings The results indicate that the employment of foreign workers benefits customers, enlarges the hotel’s network of industry contacts and enhances the knowledge, professionalism and service culture of the hotel workforce. This study identified challenges for the foreign workers such as culture shocks and problems with learning the Malay language. Research limitations/implications This is an exploratory qualitative study conducted prior to the outbreak of COVID-19. The unemployment issue is worsened as COVID-19 spreads globally. To the best of the authors’ knowledge, this is among the first study to examine the positive and negative impacts of foreign workers employment in hotels in Malaysia. Practical implications The employment of foreign workers reduces the availability of jobs for locals. Recommendations are provided for locals to improve their employability and for hotels to better host international interns. Social implications This study highlights the need for balance between the benefits of foreign workers employment, and its challenges such as local unemployment. Originality/value To the best of the authors’ knowledge, this research is among the first in the international human resources management literature to provide a first-hand perspective of employment of expatriate managers, foreign labourers and interns in hotels in a Southeast Asian developing country.

Investigating organizational factors of social response activities and their effect on corporate social performance in MNE’s subsidiaries operating in Tunisia

Purpose This study aims to develop a conceptual model to examine the impact of four organizational factors (expatriate managers, stakeholder engagement, corporate social mission and demand management) on the social response activities and their subsequent effect on corporate social performance among subsidiaries of multinational enterprises (MNEs) in Tunisia, characterized as a small African economy. Design/methodology/approach This study uses data collected from 115 subsidiaries established in an African country – Tunisia. It also applies a partial least square regression to test the hypotheses proposed in a comprehensive framework. Findings This study reveals that each of these factors, with the exception of expatriate managers, is found to positively influence the adoption of social response activities by MNE’s subsidiaries. In addition, involvement in such activities is also important in enhancing social performance concerning employees and customers. Originality/value Despite years of encouragement from scholars and theorists, studies across Africa have generally shown no interest in corporate social response as a strategic process that safeguards the well-being of host society. This paper proposes a comprehensive model for identifying the antecedents and one consequence of corporate social response activities of MNE’s subsidiaries. Stakeholder theory is used as a theoretical lens to develop a corporate social response framework.

Expatriate Managers: The Paradoxes of Living and Working Abroad, Anna Spiegel, Ursula Mense-Petermann and Bastian Bredenkötter (2019)

Review of: Expatriate Managers: The Paradoxes of Living and Working Abroad, Anna Spiegel, Ursula Mense-Petermann and Bastian Bredenkötter (2019) New York: Routledge, 242 pp., ISBN 978-1-13819-021-4, h/bk, £115

Influence of Informal Relationships on Expatriate Career Performance in China: The Moderating Role of Cultural Intelligence

ABSTRACTPursuing an international career in China can be risky particularly when there is a lack of informal relationships and knowledge of the socio-cultural environment of the country. Drawing from social capital theory of career success and intelligence theory, this study investigates the influence of expatriate manager-local subordinate guanxi on expatriate managers’ career performance and the contingency role of cultural intelligence. Using multi-source data from a sample (N = 154) of expatriate managers in China, our results show that expatriate manager-local subordinate guanxi positively influences expatriate career performance, and that this relationship is positively moderated by expatriates’ cultural intelligence. The broader theoretical and practical implications of the findings for international careers are fully discussed.