A Sociocultural Perspective on Knowledge Transfer in Mergers and Acquisitions

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Dr.. Riikka M. Sarala, Professor of International Business (Creator)
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: 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.

Additional Information

Journal of Management, 42(5), 1230-1249
Language: English
Date: 2016
mergers, acquisitions, M&A, knowledge transfer, culture, cultural differences, interfirm linkages, HR flexibility, strategic HRM

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