The Role of Leadership in Mergers and Acquisitions: A Review of Recent Empirical Studies

Abstract

In this chapter, we examine the role of M&A (mergers and acquisitions) leadership by conducting a review of recent empirical studies on M&A leadership. Our aim is to provide an overview of the current state of knowledge concerning M&A leadership. More specifically, we examine how M&A leadership has been studied (i.e., study methods, data sources), where M&A leadership has been studied (i.e., geographic distribution, industries, level of analysis), which leadership M&A outcomes and M&A leadership perspectives have been examined, and finally, how M&A leadership influences post-M&A outcomes. This allows us to identify main areas of interest and provide suggestions for further research.

Cross-border mergers and acquisitions of emerging economies' multinational enterprises — The mediating role of socialization integration mechanisms for successful integration

“…Leaders role become even more important during the cross-border M&As, and especially when companies from two different cultures are part of the deal (Larsson & Finkelstein, 1999;Rao-Nicholson, et al, 2015;Waldman & Javidan, 2009). Prior research in the context of cross-border M&As has not paid enough attention onto the role of leadership as an important antecedents for enhancing the success of cross-border M&As (Junni & Sarala, 2014;Waldman & Javidan, 2009). Leadership has been suggested to play an important role in the retention of talent following M&As (Zhang, et al, 2015).…”

“…Leadership has been suggested to play an important role in the retention of talent following M&As (Zhang, et al, 2015). Few studies that looked into the leadership aspects have focused on so-called traditional leadership styles-transformational and transactional (Junni & Sarala, 2014;Northouse, 2007). Most of the existing studies' findings are contradictory and researchers have not identified key variables that influence the success of cross-border M&As.…”

“…Due to these characteristics, it has been identified as different form of leadership compared to the more traditional leadership models such as transformational, direction oriented and transactional (Carson, et al, 2007). Despite the benefits of distributive leadership, little research in the context of cross-border M&As have investigated the influence of such style on the success of cross-borders acquisitions (Junni & Sarala, 2014;Waldman & Javidan, 2009). Moreover, overall there is a paucity of research in the context of cross-border acquisitions that has investigated the process through which different leadership styles influence the success of cross-border acquisitions (Gomes, et al, 2011;Junni & Sarala, 2014;Rao-Nicholson, et al, 2015;Weber & Tarba, 2010;Weber, et al, 2009).…”

“…Despite this, the role of the leadership is still underexplored in the cross-border M&As' success (Junni & Sarala, 2014;Schraeder & Self, 2003;Sitkin & Pablo, 2005;Waldman & Javidan, 2009). Particularly, greater attention has been paid to transformational and transactional leadership styles (Junni & Sarala, 2014;Kavanagh & Ashkanasy, 2006;Nemanich & Keller, 2007;Vasilaki, 2011), and limited attention has been dedicated to understanding the influence of other leadership styles such as distributed on cross-border acquisitions' success (e.g., Bolden, 2011;Thorpe, Gold, & Lawler, 2011).…”

“…Particularly, greater attention has been paid to transformational and transactional leadership styles (Junni & Sarala, 2014;Kavanagh & Ashkanasy, 2006;Nemanich & Keller, 2007;Vasilaki, 2011), and limited attention has been dedicated to understanding the influence of other leadership styles such as distributed on cross-border acquisitions' success (e.g., Bolden, 2011;Thorpe, Gold, & Lawler, 2011). It has been suggested that leadership styles are context specific (Javidan, Dorfman, De Luque, & House, 2006;H.…”