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Cross-border M&As: Theorizing the negative effect of political ideology mismatch with host country labor institutional context on employee outcomes

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  • Yi Lin Chow, Dawn
  • Wen Chan, Xi
  • Micelotta, Evelyn

Abstract

Negative employee behaviors (e.g., turnover and workplace deviance) can be pronounced during cross-border mergers and acquisitions (M&As), and they are often linked to their failure and suboptimal performance. Yet, thus far, M&A research has primarily focused on cultural clashes to account for such negative outcomes. Drawing on a multilevel perspective of role theory, we offer a conceptual framework that emphasizes the distinctiveness of cross-border M&As. We theorize how political ideology mismatch triggers psychological mechanisms that have important effects on employees’ attitudes and behaviors, and how the types of M&As and organizational justice perceptions could influence these psychological mechanisms. We contribute to advancing knowledge on employee outcomes in cross-border M&As by shedding light on how micro-relational dynamics interact with contextual factors to shape employees’ turnover and deviant workplace behaviors.

Suggested Citation

  • Yi Lin Chow, Dawn & Wen Chan, Xi & Micelotta, Evelyn, 2021. "Cross-border M&As: Theorizing the negative effect of political ideology mismatch with host country labor institutional context on employee outcomes," Journal of Business Research, Elsevier, vol. 128(C), pages 164-173.
  • Handle: RePEc:eee:jbrese:v:128:y:2021:i:c:p:164-173
    DOI: 10.1016/j.jbusres.2021.02.011
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