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Making great minds think alike: Emerging market multinational firms’ leadership effects on targets’ employee psychological safety after cross-border mergers and acquisitions

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  • Rao-Nicholson, Rekha
  • Khan, Zaheer
  • Stokes, Peter

Abstract

This paper examines the impact of leadership on targets’ employee psychological safety (EPS), characterized by employees’ expectation of job and remuneration stability, during the cross-border mergers and acquisitions (M&As) by emerging market multinational companies (EMNEs). The M&As by Indian and Chinese companies forms the empirical context of this study and the case survey method is used to examine the effect of leadership on EPS. The results show that the EMNEs’ leadership visibility during the M&A process has no impact on the EPS, whereas, the trust in the EMNEs’ leadership has positive effect on the EPS. The deal status has a moderating effect on the leadership visibility and positively affects the EPS. This research finds evidence of target country differences in terms of the effect of EMNEs’ leadership on EPS and limited evidence of such effect for acquirer nationality differences.

Suggested Citation

  • Rao-Nicholson, Rekha & Khan, Zaheer & Stokes, Peter, 2016. "Making great minds think alike: Emerging market multinational firms’ leadership effects on targets’ employee psychological safety after cross-border mergers and acquisitions," International Business Review, Elsevier, vol. 25(1), pages 103-113.
    • Handle: RePEc:eee:iburev:v:25:y:2016:i:1:p:103-113
    DOI: 10.1016/j.ibusrev.2015.09.007
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    3. Patel, Parth & Bhanugopan, Ramudu & Sinha, Paresha & Prikshat, Verma & Boyle, Brendan, 2024. "Home country and firm-specific advantage influences on HRM replication versus adaptation in EMNEs operating in advanced economies: A qualitative comparative analysis," Journal of Business Research, Elsevier, vol. 170(C).
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    6. Szkudlarek, Betina & Osland, Joyce S. & Nardon, Luciara & Zander, Lena, 2020. "Communication and culture in international business – Moving the field forward," Journal of World Business, Elsevier, vol. 55(6).

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