Management practices and performance of mergers and acquisitions in Pakistan: mediating role of psychological contract

Abstract

The objective of this study is to examine the direct and indirect effect of management practices (procedural justice, coordination approach, communication system, integration strategy, and coping programs) on merger and acquisition (M&A) performance in the Pakistan banking industry. Psychological contract (PC) acts as a mediator between Management practices and M&A performance. The Present study distributes a structured questionnaire to 700 bank employees of different management cadres. The useful response rate is 76 % (536 employees). It uses PLS-SEM technique for data analysis. Findings: (1) procedural justice is a key strategy which has highly significant direct and indirect effect on M&A performance; however integration strategy and the communication system have an only direct effect. (2) PC performs partial mediation at different levels between management practices and M&A financial and non-financial performance. This study provides an effective solution to solve the soft issues during and post-M&A process. This is one of the few studies which effectively integrate the five constructs into a single framework to study their effects on M&A performance. Limitations and future research directions are presented in the last section of the study.

An investigation of the relationship between workplace practices and firm performance: evidence from hotel industry, China

“…We used classical survey process and statistical control method to curtail the common method bias issues (Bari et al, 2016;Chung et al, 2015). After statistical analysis (factor analysis), we confirmed that there are no common method bias issues in the data.…”

“…The present paper used the non-parametric bootstrapping method to measure the mediating effect (Ali and Park, 2016;Hair et al, 2013). However, there is no mutual agreement exists on whether the association between the independent variable and dependent variable has to be significant before including the potential mediator (Ali and Park, 2016;Bari et al, 2016;Zhao et al, 2010). Scholars have explained that the only condition for mediation is the indirect effect has to be significant (Ali and Park, 2016;Bari et al, 2016).…”

“…However, there is no mutual agreement exists on whether the association between the independent variable and dependent variable has to be significant before including the potential mediator (Ali and Park, 2016;Bari et al, 2016;Zhao et al, 2010). Scholars have explained that the only condition for mediation is the indirect effect has to be significant (Ali and Park, 2016;Bari et al, 2016). Furthermore, if the indirect effect is significant, the mediator absorbs some of the direct effect (Bari et al, 2016;Hair et al, 2013).…”

“…Scholars have explained that the only condition for mediation is the indirect effect has to be significant (Ali and Park, 2016;Bari et al, 2016). Furthermore, if the indirect effect is significant, the mediator absorbs some of the direct effect (Bari et al, 2016;Hair et al, 2013). Notes: VAF greater than 80% indicates full mediation, equal to or greater than 20% and equal to or less than 80%.…”

Knowledge Hiding Behaviors and Team Creativity: The Contingent Role of Perceived Mastery Motivational Climate

“…accounted for (VAF) index is used to determine the level of mediation. The VAF index >80%, between 20% and 80%, and <20% indicates full, partial, and no mediation, respectively (Bari et al, 2016;Hair, Sarstedt, Hopkins, & Kuppelwieser, 2014). The results explain that AC as a mediator does not mediate the effects of factors of KH on TC.…”