Marriage to the Same Kind: Organizational Political Ideology and Mergers and Acquisitions

Chow, Dawn; Louca, Christodoulos; Petrou, Andreas P.; Procopiou, Andreas

doi:10.1177/0170840621989006

Cited by 12 publications

(6 citation statements)

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“…First and foremost, we contribute to the literature on CSR by advancing our understanding of the relationship between community political ideology and CSR. Political ideology has attracted much attention over the past decade, but most studies have concentrated on the impacts of personal or organizational ideologies (Chin et al, 2013; Chow et al, 2022; Collet, Carnabuci, Ertug, & Zou, 2022; Gupta et al, 2017; Semadeni, Chin, & Krause, 2022) with only a few exceptions (Di Giuli & Kostovetsky, 2014; Lee & Lounsbury, 2015; Rubin, 2008). Local processes of political ideology are still significantly understudied, although political ideology is frequently used to demarcate geographical boundaries as communities often have notably different political beliefs (McCarty et al, 2006).…”

Section: Discussionmentioning

confidence: 99%

“…Community political ideology, or “the shared framework of mental models that groups of individuals possess” (Denzau & North, 2000, p. 4), influences a wide range of attitudes, preferences, judgments, and behaviors (Jost, Federico, & Napier, 2009). Organization studies have investigated the relationship between political ideology and CSR at both the organizational level (Chin et al, 2013; Chow, Louca, Petrou, & Procopiou, 2022; Gupta, Briscoe, & Hambrick, 2017) and the community level (Di Giuli & Kostovetsky, 2014; Lee & Lounsbury, 2015; Rubin, 2008). While the former accounts for the variations in CSR that are directly attributed to organizational members’ beliefs and values, the latter focuses on environmental pressures grounded in the spread of ideologies throughout a local community.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

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The Two Sides of Community Political Conservatism and CSR: Exploring the role of community social connectedness

Choi

Deutsch

2023

Organization Studies

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Despite decades of globalization, organization studies have consistently found evidence of community influences on firm behavior. In this study, we develop and test a nuanced theory on the relationship between community political conservatism and corporate social responsibility engagement by integrating social capital theory and the logic of appropriateness. We demonstrate that the influence of community political conservatism is contingent upon two types of community social capital: interfirm and cooperative social connectedness. These two types of social connectedness elicit the manifestation of two different aspects from community political conservatism: free-market and community orientations. While interfirm social connectedness enhances the negative relationship between community political conservatism and corporate social responsibility engagement, cooperative social connectedness weakens it.

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Section: Discussionmentioning

confidence: 99%

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

The Two Sides of Community Political Conservatism and CSR: Exploring the role of community social connectedness

Choi

Deutsch

2023

Organization Studies

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“…Research based on this framework continues to confirm that cultural similarity between acquired and acquirer leads to better acquisition outcomes (Grabner et al. , 2017; Chow et al. , 2021; Doukas and Zhang, 2021).…”

Section: Literature Review: the Role Of Culture In Pmimentioning

confidence: 97%

From play to pay: a multifunctional approach to the role of culture in post-merger integration

Sales

Roth

Grothe‐Hammer

et al. 2021

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PurposeThe literature on Mergers and Acquisitions (M&A), cultural differences between organizations have frequently been identified as one of the main challenges in the process of post-merger integration (PMI). Existing research has explored a broad variety of cultural differences in perceptions, such as those relating to expectations, norms, values and beliefs within the respective organizations, and how these affect the process and success of PMI. However, less attention has been paid to the relevance of the macro-societal context to PMI. The ambition of this article is, therefore, to advance our understanding of how macro-level societal factors define organizational cultures and affect the success of PMI.Design/methodology/approachWe draw on social systems theory as devised by Niklas Luhmann, assuming that organizations are always embedded in the macro-level societal context of distinctive realms of social reality—such as the economy, politics, religion and the arts—that make up the so-called “function systems”. Looking at the case of the integration of a Brazilian technology start-up into a market-leading corporation, we analyze the dominant orientations towards these function systems, and the changes in these orientations over time.FindingsThe results suggest that differences in organizational culture in PMI can be partly explained by differences in orientations to the function systems. Moreover, forcing dramatic changes of orientations towards the function systems within a merged entity can severely damage its raison d'etre in the first place, potentially leading to, in some sense, an account of “culture murder”.Originality/valueThis article is unique in demonstrating that organizations are multifunctional systems whose culture is defined by the highly specific and potentially varying degrees of importance they place on individual function systems and that knowledge or neglect of these functional profiles may seriously affect the success of post-merger integration. Against this backdrop, the article presents a multifunctional profiling method that may easily translate into PMI management tools.

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“…the bandwagon effect; Angwin et al , 2022). At the meso level, the authors focus on assessing the fit between acquirer and acquired on issues of similarity and complementarity in resources and capabilities, structural characteristics and product and market portfolios or even the cultural similarity of both firms (Chow et al , 2021). Regarding the microeconomic level, issues such as CEO psychology and behavior as well as the alignment of interests between CEOs and shareholders of both firms focus most of the mergers and acquisitions analysis (Nyberg et al , 2010; Angwin et al , 2022).…”

Section: The Role Of Strategic Alignment On Acquirer Post-acquisition...mentioning

confidence: 99%

On the alignment of competitive strategies for successful acquisitions: a two-decade longitudinal analysis

López‐Manuel

Sartal

Vázquez

2023

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Purpose Most studies explore the success of mergers and acquisitions through ex ante analyses based on the compatibility of resources and capabilities between the acquirer and target. As more than half of them fail, there seems to be room for enhancing our understanding of when and how acquisitions can actually improve firms' competitiveness. Diverging from these conventional approaches, the authors posit that attention should be at the strategic level. The purpose of this paper, therefore, is to explore the existence of compatibility between acquirers’ and targets’ competitive strategies and its effect on post-acquisition business performance. Design/methodology/approach Through the Thomson Reuters Eikon financial and acquisition databases, the authors built a unique data panel of 174 acquirer–target matched acquisitions in the manufacturing sector from 24 different countries between 2000 and 2020. The authors used a two-step System-GMM approach to address the hypotheses proposed in this paper. This methodology allowed to isolate and easily compare the differential effects of each possible combination of strategic similarity and dissimilarity between the target and acquiring company on the latter’s post-acquisition strategies. Findings The need to unravel the motives behind successful acquisitions has gained enormous interest in recent years among academics and managers to improve – or maintain – firm competitiveness. Through a panel data of 174 acquisitions among manufacturing firms (2000–2020), this study shows that differentiated firms improve their business performance by acquiring firms with similar strategies; nevertheless, their performance worsens if the acquired firm follows a cost-leadership strategy. Concerning acquirers with a cost-leadership strategy, the lack of clear behavioral patterns suggests that the lower knowledge absorption capacity associated with these firms might be a decisive factor in being able to assimilate and efficiently exploit the acquired firm's knowledge. Originality/value Overall, this approach offers a new and valuable perspective for practitioners because it improves understanding of the possible causes of merger failure and opens new attentions to consider in maximizing success and long-term competitiveness. The results of this study bring, thus, an unexpected result to this research: the importance of the acquirer’s strategy beyond the similarity or dissimilarity of the strategies of the acquirer and the acquired company.

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Marriage to the Same Kind: Organizational Political Ideology and Mergers and Acquisitions

Cited by 12 publications

References 80 publications

The Two Sides of Community Political Conservatism and CSR: Exploring the role of community social connectedness

The Two Sides of Community Political Conservatism and CSR: Exploring the role of community social connectedness

From play to pay: a multifunctional approach to the role of culture in post-merger integration

On the alignment of competitive strategies for successful acquisitions: a two-decade longitudinal analysis

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