Necessity to Integrate Operational Business During M&A: The Effect of Employees' Vision and Cultural Openness
This research investigates the impact of target firm employees' vision and cultural openness on their perception of the need to integrate their operational business into a bidder firm. The results show that, not vision but cultural openness positively correlates to target firm employees' perceived need to integrate their operational business into the bidder firm. However, culturally open employees with a clear, articulated vision perceive less need to integrate their operational businesses into the bidder firm. This research contributes to understanding the behavior of the target firm's employees in particular. While the decision to undertake an M&A integration process is primarily driven by economic issues, a successful result is influenced by social issues, such as the cultural openness of the target firm's employees.
Cultural openness; Integration necessity; M&A; Vision
Research Institute for Economics and Business Administration
Rokkodai-cho, Nada-ku, Kobe
Robert A. GOEHLICH
Department of Engineering and Technology
Embry-Riddle Aeronautical University