TY - JOUR
T1 - The Impact of Organizational Culture Differences, Synergy Potential, and Autonomy Granted to the Acquired High-Tech Firms on the M&A Performance
AU - Tarba, Shlomo Y.
AU - Ahammad, Mohammad F.
AU - Junni, Paulina
AU - Stokes, Peter
AU - Morag, Omri
N1 - Publisher Copyright:
© The Author(s) 2017.
PY - 2019/6/1
Y1 - 2019/6/1
N2 - The aim of the article is to examine the factors influencing the overall acquisition performance of the companies acquiring the high-tech firms. The data were gathered during 2007-2009 via a cross-sectional survey using a questionnaire on a sample of Israeli high-tech firms that were engaged in acquisitions. Given its global leading role in the high-tech sector, Israel constitutes an important site for the study of mergers in this industrial domain. The findings indicate that synergy potential (similarities and complementarities) between high-tech merging firms, effectiveness of post-acquisition integration, and organizational cultural differences positively influence the overall acquisition performance merging high-tech firms. Moreover, our findings suggest that organizational cultural differences moderate the relationship between effectiveness of post-acquisition integration and overall acquisition performance as such that positive effect of effectiveness of post-acquisition integration is higher when organizational differences are higher. Our findings indicate that organizational cultural differences also positively moderate the relationship between autonomy granted and the overall acquisition performance. An important contribution of the present article is the development of a conceptual framework incorporating the direct and moderating effect of organizational cultural differences and autonomy granted on the overall performance of acquisition.
AB - The aim of the article is to examine the factors influencing the overall acquisition performance of the companies acquiring the high-tech firms. The data were gathered during 2007-2009 via a cross-sectional survey using a questionnaire on a sample of Israeli high-tech firms that were engaged in acquisitions. Given its global leading role in the high-tech sector, Israel constitutes an important site for the study of mergers in this industrial domain. The findings indicate that synergy potential (similarities and complementarities) between high-tech merging firms, effectiveness of post-acquisition integration, and organizational cultural differences positively influence the overall acquisition performance merging high-tech firms. Moreover, our findings suggest that organizational cultural differences moderate the relationship between effectiveness of post-acquisition integration and overall acquisition performance as such that positive effect of effectiveness of post-acquisition integration is higher when organizational differences are higher. Our findings indicate that organizational cultural differences also positively moderate the relationship between autonomy granted and the overall acquisition performance. An important contribution of the present article is the development of a conceptual framework incorporating the direct and moderating effect of organizational cultural differences and autonomy granted on the overall performance of acquisition.
KW - 512 Business and Management
KW - mergers and acquisitions
KW - high-tech
KW - post-acquisition integration
KW - organizational cultural differences
KW - M&A performance
UR - http://www.scopus.com/inward/record.url?scp=85064573761&partnerID=8YFLogxK
U2 - 10.1177/1059601117703267
DO - 10.1177/1059601117703267
M3 - Article
AN - SCOPUS:85064573761
SN - 1059-6011
VL - 44
SP - 483
EP - 520
JO - Group and Organization Management
JF - Group and Organization Management
IS - 3
ER -