Integration of nonmarket and market activities in cross-border mergers and acquisitions

Ahammad, Mohammad F., Tarba, Shlomo, Frynas, Jedrzej George and Scola, Andrew (2017) Integration of nonmarket and market activities in cross-border mergers and acquisitions. British Journal of Management, 28 (4). ISSN 1045-3172 (doi:10.1111/1467-8551.12228)

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Abstract

Drawing on the resource dependence theory and the resource-based view, this paper investigates the interactions between market and nonmarket activities of firms in the context of the post-merger integration phase in cross-border mergers and acquisitions (M&As). Based on a cross-country survey of 111 M&A practitioners who were personally involved in cross-border M&As around the world, we test seven hypotheses on various market and nonmarket aspects of post-merger integration. We find a positive correlation between buffering strategies and adaptive capabilities in the nonmarket environment, and between bridging and adaptive capabilities in the market environment. However, we could not find any significant correlation between buffering and adaptive capabilities in the market environment, and bridging and adaptive capabilities in the nonmarket environment. We also find that adaptability in the nonmarket environment is positively correlated with adaptability in the market environment, and in turn adaptability in the market environment leads to positive organizational performance of a cross border M&A. These results provide further support for the value of the alignment between market and nonmarket activities and help to fill a gap in the literature on the market-nonmarket interactions in post-merger integration.

Item Type: Article
Additional Information: Special Issue: Non-market Social and Political Strategies
Research Areas: A. > Business School > International Management and Innovation > Corporate Social Responsibility and Business Ethics group
Item ID: 21579
Notes on copyright: This is the peer reviewed version of the following article: Ahammad, M. F., Tarba, S. Y., Frynas, J. G. and Scola, A. (2017), Integration of Non-market and Market Activities in Cross-border Mergers and Acquisitions. Brit J Manage, 28: 629–648. doi:10.1111/1467-8551.12228, which has been published in final form at https://doi.org/10.1111/1467-8551.12228. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
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Depositing User: George Frynas
Date Deposited: 03 Apr 2017 11:15
Last Modified: 05 Oct 2019 14:28
URI: https://eprints.mdx.ac.uk/id/eprint/21579

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