Exploring the factors influencing the negotiation process in cross-border M&A

AHAMMAD, Mohammad, TARBA, Shlomo, LIU, Yipeng, GLAISTER, Keith and COOPER, Cary (2016). Exploring the factors influencing the negotiation process in cross-border M&A. International Business Review, 25 (2), 445-457.

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Official URL: http://www.sciencedirect.com/science/article/pii/S...
Link to published version:: https://doi.org/10.1016/j.ibusrev.2015.06.001

Abstract

This research study provides an empirical examination of the impact of national cultural distance, organizational cultural differences, communication, and planned employee retention on the effectiveness of negotiation process in the cross-border mergers & acquisitions (M&As). We developed and tested a conceptual framework of negotiation process in order to provide a framework for analysis of the key components of the negotiation process in the cross border M&A. The findings indicate that communication positively influence antecedent and concurrent phase of negotiation process. In addition, national cultural distance and organizational cultural differences negatively influence the effectiveness of concurrent phase. We also found that national cultural distance moderates the relationship between communication and effectiveness of concurrent phase of the negotiation process, as such that the positive effect of communication is lower when national cultural distance is higher. Furthermore, we found that planned employee retention positively affect the effectiveness of concurrent phase. Finally, the effectiveness of concurrent phase positively influence the effectiveness of consequent phase i.e. M&A agreement. The contribution of this study lies in providing new insights on negotiation- associated factors for incumbent executives, in order to enable them to better plan and implement cross- border mergers and acquisition deals.

Item Type: Article
Research Institute, Centre or Group - Does NOT include content added after October 2018: Sheffield Business School Research Institute > International Business, Economics, SMEs and Entrepreneurship
Departments - Does NOT include content added after October 2018: Sheffield Business School > Department of Management
Identification Number: https://doi.org/10.1016/j.ibusrev.2015.06.001
Page Range: 445-457
Depositing User: Mohammad Ahammad
Date Deposited: 17 Jan 2017 17:45
Last Modified: 18 Mar 2021 17:45
URI: https://shura.shu.ac.uk/id/eprint/14697

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