Merger Strategies as a Response to Bilateral Market Power

Galbraith, Craig S.; Stiles, Curt H.

doi:10.5465/256042

Cited by 16 publications

(24 citation statements)

References 13 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Nevertheless, M&As are beset by numerous problems (Newburry and Zeira, 1997), with 50 per cent of domestic acquisitions -and 70 per cent of cross-border acquisitions -failing to produce intended results (Capron, 1999). Scholars have examined these problems in terms of strategic market entry choice (Hennart and Park, 1993), market valuations (Jensen and Ruback, 1983), value creation (Haspeslagh and Jemison, 1991) and firm performance (Galbraith and Stiles, 1984;Chatterjee, 1986;Blackburn and Lang, 1989), finding that difficulties in M&As trace to a lack of a compelling strategic rationale, unrealistic expectations of possible synergies and paying too much for acquired firms. However, although financial and strategic studies have significantly increased our knowledge of M&As, this research is incomplete, in large measure due to a failure to account for personnel issues.…”

Section: Introductionmentioning

confidence: 97%

The role of human resource management in cross-border mergers and acquisitions

Aguilera¹,

Dencker

2004

The International Journal of Human Resource Management

133

105

View full text Add to dashboard Cite

As an emerging economy undergoing structural reform, employment quantity and quality in China benefit from outward foreign direct investments. Cross-border mergers and acquisitions have been developing rapidly. International human resource integration is one of the determining factors in the success of the outward direct investment. Human resource management risk is more complicated in the situation of cross-border mergers and acquisitions. With case studies from cross-border merger and acquisition practice in China, this paper studies the risks in cross-border mergers and acquisitions, and gives corresponding coping strategies. Human resource management risk has various forms in cross-border mergers and acquisitions, arises from various source, such like labor risk, cultural difference, organizational cultural divergence, incentive system. This paper analyzes strategies for international human resource management, include localization strategy, social responsibility of multinational corporation in host country, communication, incentive reward system and due diligence before merger and acquisition.

show abstract

Section: Introductionmentioning

confidence: 97%

The role of human resource management in cross-border mergers and acquisitions

Aguilera¹,

Dencker

2004

The International Journal of Human Resource Management

133

105

View full text Add to dashboard Cite

show abstract

“…In developing this research, we benefited from discussions with Don Palmer. We presented an earlier version of this paper at the annual meeting of the Academy of Management in Seattle, 2003. level of analysis have examined the effects of resource dependence (Pfeffer, 1972), industry concentration (Pfeffer & Salancik, 1978), market power (Burt, 1980;Galbraith & Stiles, 1984), industry profitability (Christensen & Montgomery, 1981;Park, 2003), and industry constraints (Palmer, Barber, Zhou, & Soysal, 1995) on merger behaviors (Finkelstein, 1997). Such factors as environmental uncertainty (Dickson & Weaver, 1997), technological complexity and volatility (Hagedoorn, 1993), industry growth (Devlin & Bleackley, 1988;Dickson & Weaver, 1997), and demands for internationalization (Dickson & Weaver, 1997) have been identified as correlates of alliances.…”

mentioning

confidence: 99%

Industry Determinants of the “Merger Versus Alliance” Decision

Yin

Shanley

2008

AMR

152

109

View full text Add to dashboard Cite

Mergers and acquisitions (M&As) and alliances are potential alternative choices for managers. We propose that three dimensions of industry conditions are likely to be influential in such choices: (1) industry demands on firms to make significant commitment, (2) the environmental pressures for flexibility, and (3) the limitations on firm choices stemming from industry concentration and institutional conditions. We develop propositions about how differences across these three dimensions influence the choices that firms make between M&As and alliances.

show abstract

“…M&As, as a "pure" form of constraint absorption, have been traditionally considered the primary strategy for an organization to manage resource contingencies in a world of uncertainty (Casciaro and Piskorski 2005;Galbraith and stiles 1984). As Pfeffer andSalancik (1978, 2003, p. 115) note, M&As are mechanisms "used by organizations to restructure their environmental interdependence in order to stabilize critical exchanges."…”

Section: Strategic Equifinalitymentioning

confidence: 99%

“…Galbraith and Stiles (1984) show that the relative market power that resides in the bilateral relationships between buyer and seller drives firms′ merger strategies. Finklestein (1997) extends Pfeffer′s model by identifying sources of longitudinal and cross-sectional variation in the strength of the resource dependence explanation.…”

Section: Introductionmentioning

confidence: 99%

Resource Dependence and Cross-border Constraint-absorption

Xia

2010

Manag Int Rev

View full text Add to dashboard Cite

0 this study applies resource dependence theory to understand the adoption of cross-border constraint-absorption strategies by firms. I examine how trade dependence drives these strategies in the form of interindustry mergers and acquisitions, joint ventures, and strategic alliances in U.S. manufacturing industries. 0 Based on panel data between 1995 and 2000, results suggest that resource dependence theory provides a useful framework for predicting the adoption of various constraint-absorption strategies in an industry in a foreign country. Over time, however, the effect of trade dependence erodes. 0 This paper also finds that the within-form imitation effect and the cross-form spillover effect diminish the impact of trade dependence on subsequent entry decisions.

show abstract

Merger Strategies as a Response to Bilateral Market Power

Cited by 16 publications

References 13 publications

The role of human resource management in cross-border mergers and acquisitions

The role of human resource management in cross-border mergers and acquisitions

Industry Determinants of the “Merger Versus Alliance” Decision

Resource Dependence and Cross-border Constraint-absorption

Contact Info

Product

Resources

About