Transformational leadership and ambidexterity in the context of an acquisition

The impact of leadership on organizational ambidexterity and employee psychological safety in the global acquisitions of emerging market multinationals

“…In fact successful integration of mergers hinges on a competent leaderships style that facilitate expectations, cultural adjustment, talent retention and employees' psychological safety during M&As integration stage (Kavanagh & Ashkanash, 2006;Nemanich & Vera, 2009;Waldman & Javidan, 2009;Zhang et al, 2015;Rao-Nicholson et al, 2016). The leadership style alternatively referred to as charismatic (Conger & Kanungo, 1998;Waldman & Yammarino, 1999), transformational (Bass, 1985;Pawar & Eastman, 1997;Judge & Piccolo, 2004;Nemanich & Keller, 2007;Vasilaki, 2011a), visionary (Sashkin, 1988) or inspirational, will be examined along with the transactional and laissez faire ones for their impact on EMM cross-border acquisitions; for simplicity, we will refer to the main style under study as 'charismatic'.…”

“…Ambidexterity is defined as the organizational ability to engage in the dual aspects of organizational growth-namely, exploration and exploitation (Jansen et al, 2008;Nemanich & Vera, 2009;Junni et al, 2013). It has also been linked with management paradox (Yoon & Chae, 2012).…”

“…It has also been linked with management paradox (Yoon & Chae, 2012). In the context of acquisitions, ambidextrous organizations will be capable of creating synergies between the acquirer and target to generate valuable future exploitative opportunities (Jansen et al, 2008;Nemanich & Vera, 2009;RaoNicholson et al, 2016). The role played by leadership is undeniably quite pertinent to organizational survival and essential to the development of an ambidextrous organization (Jansen, Tempelaar, Van den Bosch & Volberda, 2009;Cao, Simsek & Zhang, 2010;Rosing, Frese & Bausch, 2011;Tushman et al, 2011).…”

“…Organizational ambidexterity is the organizational ability to engage in the dual aspects of exploration and exploitation (Benner & Tushman 2003, Jansen et al 2008Nemanich & Vera, 2009;Junni et al, 2013). In the acquisitions context, an ambidextrous organization is capable of creating synergies between acquirer and target to generate valuable future exploitative opportunities (Nemanich & Vera, 2009;Junni et al, 2013;Rao-Nicholson, Khan & Stokes, 2016).…”

“…One of the least examined factors related to acquisition performance is the human cost of cross-border acquisitions, and how acquisition failure can be driven by human factors, including the apathy of the target's employees towards the acquirer (Cartwright & Cooper, 1993;Larsson & Finkelstein, 1999;Larsson & Lubatkin, 2001;Haleblian, Devers, will considerably influence the target's EPS (Nemanich & Vera, 2009;O'Reilly & Tushman, 2013;Meglio, King & Risberg, 2015). Yet, most extant studies have either looked at a single type of leadership in an organization and at its impact on employees emotions during acquisitions, or have studied acquisitions involving developed economy companies (Sinkovics et al, 2011;Gunkel et al, 2015).…”