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Exploring the effects of mergers and acquisitions on acquirers' sustainability orientation: Embedding, adding, or losing sustainability

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  • Vincenzo Vastola
  • Angeloantonio Russo

Abstract

Mergers and acquisitions (M&A) have been primarily investigated from a shareholder‐centric perspective of economic value maximization. However, this type of strategic initiatives also carries relevant implications for companies' capacity to respond to increasing social and environmental concerns among their stakeholders. In this study, we explore the processes related to, and nonfinancial consequences of, acquisitions involving sustainability‐oriented firms. Leveraging interviews with business decision makers and secondary data covering the pre‐ and post‐acquisition phases, we find three main paths leading the acquiring firms to embed, add, or lose sustainability. Therefore, three possible post‐acquisition outcomes emerge, associated with differences in acquirers' focus on sustainability infusing the deal rationale, their due diligence activity, and practices of stakeholder management and integration in the post‐acquisition phase.

Suggested Citation

  • Vincenzo Vastola & Angeloantonio Russo, 2021. "Exploring the effects of mergers and acquisitions on acquirers' sustainability orientation: Embedding, adding, or losing sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1094-1104, February.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:2:p:1094-1104
    DOI: 10.1002/bse.2673
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    References listed on IDEAS

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    2. Mussa Hussaini & Ugo Rigoni & Paolo Perego, 2023. "The strategic choice of payment method in takeovers: The role of environmental, social and governance performance," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 200-219, January.
    3. Usman Khizar, Hafiz Muhammad & Iqbal, Muhammad Jawad & Khalid, Junaid & Adomako, Samuel, 2022. "Addressing the conceptualization and measurement challenges of sustainability orientation: A systematic review and research agenda," Journal of Business Research, Elsevier, vol. 142(C), pages 718-743.
    4. Hafiz Muhammad Usman Khizar & Muhammad Jawad Iqbal & Muhammad Imran Rasheed, 2021. "Business orientation and sustainable development: A systematic review of sustainability orientation literature and future research avenues," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(5), pages 1001-1017, September.
    5. Patrizia Gazzola & Stefano Amelio & Daniele Grechi & Chiara Alleruzzo, 2022. "Culture and sustainable development: The role of merger and acquisition in Italian B Corps," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1546-1559, September.
    6. Stefania Camoletto & Laura Corazza & Simone Pizzi & Erica Santini, 2022. "Corporate Social Responsibility due diligence among European companies: The results of an interventionist research project with accountability and political implications," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1122-1133, September.

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