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

Article


Ahammad, M., Tarba, S., Frynas, J. and Scola, A. 2017. Integration of nonmarket and market activities in cross-border mergers and acquisitions. British Journal of Management. 28 (4), pp. 629-648. https://doi.org/10.1111/1467-8551.12228
TypeArticle
TitleIntegration of nonmarket and market activities in cross-border mergers and acquisitions
AuthorsAhammad, M., Tarba, S., Frynas, J. and Scola, A.
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.

Research GroupCorporate Social Responsibility and Business Ethics group
LanguageEnglish
PublisherWileyBlackwell
JournalBritish Journal of Management
ISSN1045-3172
Electronic1467-8551
Publication dates
Online10 Nov 2017
Print10 Nov 2017
Publication process dates
Deposited03 Apr 2017
Accepted13 Jan 2017
Output statusPublished
Accepted author manuscript
Copyright Statement

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.

Additional information

Special Issue: Non-market Social and Political Strategies

Digital Object Identifier (DOI)https://doi.org/10.1111/1467-8551.12228
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https://repository.mdx.ac.uk/item/86y11

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