acquired firms have received considerable research attention in recent years
(for reviews see Cartwright and Cooper, 1996; Evans et al., 2002; Schweiger and
Goulet, 2000; Stahl and Sitkin, 2001), several important issues related to the
post-combination integration process have been left unexplored. For example,
few systematic attempts have been made to examine, either conceptually or
empirically, the role that processes related to trust building, employee sense
making, and leadership may play in the M&A process. Other aspects of the
post-combination integration process, such as the consequences of cultural fit
or misfit, have received more research attention, but empirical findings are
mixed. Clearly, our current understanding of the sociocultural dynamics in
cross-border M&A is limited.
One reason – and challenge – is that research in this complex area needs
to be interdisciplinary or broad in its disciplinary orientation – linking the
strategic, cross-cultural, and human resource management perspectives. Each
of these perspectives has something to contribute, but none can contribute
significantly independent of the others. For example, as has been discussed
earlier in this chapter, frameworks that focus exclusively on the cultural issues
involved in integrating merging or acquired firms, such as the ‘cultural dis-
tance’ hypothesis, cannot explain why some cross-border M&A succeed and
others fail. Whether cultural differences have a positive or negative impact on
M&A performance is likely to depend on a variety of factors, including the
nature of the cultural differences, the interventions chosen to manage these
differences, and the strategic intent behind the M&A. Interdisciplinary
research is needed to find out how these dimensions interactively influence
M&A performance and to provide fresh insights into the sociocultural
processes and human resource management issues involved in cross-border
M&A.
This chapter concludes the first part of this book. In Part 2, we will discuss
national differences in HRM policies in Europe, Asia and developing countries,
as well as two theoretical models that account for these differences.
6 DISCUSSION QUESTIONS
1 What are the various post-merger/-acquisition strategies that one can pursue
and what are the factors to consider in determining the appropriate strategy?
2 What are the cultural and people issues HR should focus on to ensure the suc-
cess of a merger or an acquisition?
3 What is the role of the integration manager and the transition team? What pro-
fessional and personal qualities should these incumbents possess?
HRM in Cross-Border Mergers and Acquisitions 109