Culture or Culture of Participation: A Success Factor by International Mergers and Acquisitions?

Petia Genkova,Anna Gajda

doi:10.5539/ijbm.v12n4p157

Abstract

Diverse studies try to identify the influencing factors of success and failure for international Mergers and Acquisitions (M&A). In this context, especially the role of participation and culture is being discussed controversially. The following article tries to shed some light on the debate, based on a quantitative research conducted in Bulgaria and Romania. In both countries organizational members were surveyed who were involved in an international M&A-process initiated by a German based multinational company. The results show that participation is understood and valued differently in both countries.

Highlights

Introduction and Theoretical BackgroundDue to globalization and increasingly connected markets, companies cannot focus any more on internal growth strategies exclusively
Mergers and Acquisitions (M&A) transactions can be divided into three different stages: Pre-Merger stage, transaction stage and Post-Merger-Integration stage
We want to know whether employees wish to be involved in the M&A process and whether a good leader should behave authoritarian

Summary

Introduction

Introduction and Theoretical BackgroundDue to globalization and increasingly connected markets, companies cannot focus any more on internal growth strategies exclusively. In addition to general leadership tasks, internationally successful leaders must lead employees from other cultures differently (Stock-Homburg & Ringwald, 2008). Leaders and employees of a country or an organization have a self-evident perception of good and correct leadership concerning authority, participation, accountability and behave (Barmeyer & Haupt, 2007).

Results

Conclusion