CULTURAL DUE DILIGENCE IN M&amp;A. IMPORTANCE OF SOFT RISKS FACTORS

Warter, Iulian; Warter, Liviu

doi:10.26458/1724

Cited by 6 publications

(7 citation statements)

References 22 publications

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“…In addition, this tool should also include an analysis of the impact of macroeconomic factors and take into account the uncertainty factor of the company's external environment. Warter and Warter (2017) identifies the risks associated with the cultural diversity of the companies participating in the transaction as the main risk, proposing due diligence as the main tool to combat them. It is the process of identifying and assessing the degree of cultural alignment or compatibility between companies that are potential parties to a transaction.…”

Section: Financial Payment Riskmentioning

confidence: 99%

“…The stage of analyzing the company's external environment and analyzing candidates for an M&A transaction, in particular, the choice of the target company as the most significant risks is accompanied by the risks of the wrong choice of the target company and the risks of company incompatibility. For example, Warter and Warter (2017) highlights the risk of significant cultural differences between companies; 3.…”

Section: Introductionmentioning

confidence: 99%

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Mergers and Acquisitions Risk Modeling

Vertakova

Vselenskaya

Plotnikov

2021

JRFM

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In the context of the dynamics of the modern external environment, the importance of risk management in general and the risks inherent in the processes of mergers and acquisitions has sharply increased. This is becoming one of the primary challenges in business, the solution of which will contribute to economic growth and development. In this article, based on a broad review of literature, the key risks of mergers and acquisitions are identified and classified, the level of their significance is assessed, the relevant management tools are selected for each risk and a computer program is developed that implements the selection of tools for each specific merger and acquisition transaction. A comprehensive automated methodology for the selection of risk management tools in the implementation of mergers and acquisitions can become an effective risk management tool for companies participating in such transactions. This will allow to identify and track risks in a timely manner, assess their significance, and, among other things, contribute to the adoption of effective management decisions regarding risk management.

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Section: Financial Payment Riskmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Mergers and Acquisitions Risk Modeling

Vertakova

Vselenskaya

Plotnikov

2021

JRFM

View full text Add to dashboard Cite

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“…Since the 1980s, after emergence the concept of strategic HRM, the focus of scholars and consultants have been equally divided on hard issues and SIs (Gomes, Angwin, Peter, & Mellahi, 2012;Pikula, 1999). Dixon (2005) described that culture is a soft notion and organizations should use culture-related surveys and multiple assessment tools to measure and manage the cultural clashes (Dixon, 2005;Walter & Walter, 2017). A practical approach to managing cultural issues is to develop a set of cultural features for all, such as customer-focused, innovative, conclusive, team-based, and respectful (Dixon, 2005).…”

Section: Soft Issues Knowledge Andtechnology Sharing Andtransfer and Fimentioning

confidence: 99%

“…Effective management of cultural differences, adaptation, and understanding can also help in KTST (Nur, 2012). Walter and Walter (2017) pointed out that managers involved in M&As deals are identified by different cultural factors such as ethnicity, native language, and nationality. Although national and organizational cultural differences are a vital reason behind integration hitches, however, overemphasizing on the cultural differences as a reason for M&As failure by the managers should be noticed (Walter & Walter, 2017).…”

Section: Soft Issues Knowledge Andtechnology Sharing Andtransfer and Firm Performancementioning

confidence: 99%

“…Walter and Walter (2017) pointed out that managers involved in M&As deals are identified by different cultural factors such as ethnicity, native language, and nationality. Although national and organizational cultural differences are a vital reason behind integration hitches, however, overemphasizing on the cultural differences as a reason for M&As failure by the managers should be noticed (Walter & Walter, 2017). Managers with special skills such as target organization language and culture understanding should be deployed in cross-border M&As deals.…”

Section: Soft Issues Knowledge Andtechnology Sharing Andtransfer and Firm Performancementioning

confidence: 99%

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Soft Issues During Cross-Border Mergers and Acquisitions and Industry Performance, China–Pakistan Economic Corridor Based View

et al. 2019

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China-Pakistan Economic Corridor (CPEC) has got a vital position in the perspectives of economic growth and sustainable development of China and Pakistan. Viewing these prospects, the Chinese organizations are taking interest to deal with Pakistani organizations for the reinforcement of the mergers and acquisitions (M&As) deals. But, soft issues (SIs), such as, differences in organizational and national cultures, leadership styles, and human resource (HR) practices, may arise between Sino-Pak business entities which may hamper the successful dealings of M&As. This research investigates the effects of SIs on knowledge and technology sharing and transfer (KTST) and firm performance (FP), leading to industry performance (IP), and KTST effect on FP. Drawing on social exchange theory, psychological contract development and maintenance (PCDM) is investigated as a moderator in this study. The convenience sampling technique and administrative survey approach are applied for data collection. The 550 questionnaires were distributed among the Chinese and Pakistani workers. However, only 435 respondents gave proper feedback. Partial least square, structural equation modeling (PLS-SEM), a statistical model through smart PLS-3 is applied to analyze the data. The results elucidate the negative impacts of SIs on KTST and FP while KTST affects positively on FP and FP positively affects IP. The PCDM significantly moderates the effects of SIs on KTST and FP. If the Chinese organizations concentrate upon PCDM, the SIs would be resolved. The productive deals of M&As would be helpful in underpinning the exclusive growth of CPEC projects. The implications and limitations are discussed at the end of this study. Keywords soft issues, knowledge and technology sharing and transfer, firm performance, industry performance, psychological contract, CPEC Research Question 1: What key SIs may arise during cross-border M&As deals, especially among Sino-Pak business organization? Research Question 2: How SIs affect KTST practices and FP, leading to IP, and KTST practices affect FP? Research Question 3: How PCDM moderates the effect of SIs on KTST practices and FP, leading to the IP?

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Organizational Culture at Offshore Service Centres of Central and Eastern Europe

Kedziora¹

2020

Understanding National Culture and Ethics in Organizations

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CULTURAL DUE DILIGENCE IN M&A. IMPORTANCE OF SOFT RISKS FACTORS

Abstract: During the last decades, the corporate world has witnessed a significant rise in the number of cross border mergers and acquisitions (M&As).In

Cited by 6 publications

References 22 publications

Mergers and Acquisitions Risk Modeling

Mergers and Acquisitions Risk Modeling

Soft Issues During Cross-Border Mergers and Acquisitions and Industry Performance, China–Pakistan Economic Corridor Based View

Organizational Culture at Offshore Service Centres of Central and Eastern Europe

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