Aghasi, K., Colombo, M.G., Piscitello, L. et al. (1 more author) (2024) Cultural distance and the permanence of acquired CEOs in cross-border high-tech acquisitions: combining the acquirer's and CEO's perspectives. R&D Management, 54 (3). pp. 450-469. ISSN 0033-6807
Abstract
The cultural distance between the acquiring and acquired firms is a double-edged sword in cross-border high-tech acquisitions. It magnifies the ‘combination potential’ of the acquisition but also poses severe integration challenges. Scholars have highlighted that the retention of acquired CEOs in combined entities is an effective integration action to address these challenges but have generally considered it from the acquiring firms' perspective only. In this study, we also take into account the acquired CEOs' perspective and find that the permanence of acquired CEOs in the post-acquisition organization depends on the balance between the acquiring firms' incentives to retain the acquired CEOs and the acquired CEOs' opportunity costs to remain in the company. Specifically, we argue that both sides increase with the cultural distance between the acquiring and acquired firms and that the acquired CEOs' personal characteristics and context-specific conditions also influence this balance. We test our hypotheses using a sample of 447 cross-border acquisitions of small high-tech firms by large listed firms between 2001 and 2014. Our findings confirm our expectations and highlight the role of micro-foundational characteristics in shaping the effect of key macro-level factors on the integration of high-tech acquisitions in international contexts.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2023 The Authors. R&D Management published by RADMA and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited. https://creativecommons.org/licenses/by/4.0/ |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 30 Oct 2023 14:30 |
Last Modified: | 30 Oct 2024 17:18 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/radm.12653 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:204694 |