A Sociocultural Perspective on Knowledge Transfer in Mergers and Acquisitions. (July 2016)

• Record Type: Journal Article
• Authors: Sarala, Riikka Mirja; Junni, Paulina; Cooper, Cary L.; Tarba, Shlomo Yedidia
• Is Part Of: Journal of management. Volume 42:Number 5(2016)
• Page Start: 1230
• Page End: 1249
• Publication Date: 2016-07
• Subjects: mergers -- acquisitions -- M&A -- knowledge transfer -- culture -- cultural differences -- interfirm linkages -- HR flexibility -- strategic HRM; Management -- Periodicals; 658.005
• DOI: 10.1177/0149206314530167
• Languages: English
• ISSNs: 0149-2063

Abstract

Sociocultural factors are important determinants of merger and acquisition (M&A) outcomes. Despite advances in this field, our understanding of sociocultural factors in M&As remains incomplete. In particular, the roles of sociocultural interfirm linkages, HR flexibility, and organizational cultural differences in M&As require further elucidation. The present article contributes to the M&A literature by further clarifying the multifaceted role of these sociocultural factors in M&As. We suggest that sociocultural interfirm linkages (complementary employee skills, trust, collective teaching, and cultural integration) between the merging firms influence the level of knowledge transfer in M&As. Furthermore, we argue that HR flexibility (flexibility in employee skills, flexibility in employee behavior, and flexibility in HR practices) is vital for the development of the above-mentioned sociocultural interfirm linkages in M&As. Finally, we maintain that organizational cultural differences are important antecedents of HR flexibility in M&As.