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How do employees adapt to organizational change driven by cross-border M&As? A case in China

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  • Chung, Goo Hyeok
  • Du, Jing
  • Choi, Jin Nam

Abstract

Globalization has encouraged merger and acquisitions (M&As) across countries. We propose a theoretical model that explains the process through which employees adapt to changes introduced by cross-border M&As. Empirical analyses based on 174 Chinese employees who experienced an unexpected M&A initiated by a Western company suggest that the relationship between change management practices (i.e., provision of training and assurance of job security) and post-change performance is mediated by employees’ person–change (P–C) fit perceptions. Integrating the quantitative results with interviews, we further theorize that underlying cultural dynamics (e.g., collectivism and Confucian doctrines) drive change-related attitudes and behavior among Chinese employees.

Suggested Citation

  • Chung, Goo Hyeok & Du, Jing & Choi, Jin Nam, 2014. "How do employees adapt to organizational change driven by cross-border M&As? A case in China," Journal of World Business, Elsevier, vol. 49(1), pages 78-86.
    • Handle: RePEc:eee:worbus:v:49:y:2014:i:1:p:78-86
    DOI: 10.1016/j.jwb.2013.01.001
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    References listed on IDEAS

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    Cited by:

    1. Thuy, Nguyen Thi Bich & Van, Phan Dang Ngoc Yen, 2020. "Employee Commitment To Organizational Change With The Role Of Job Satisfaction And Transformational Leadership," OSF Preprints vs689, Center for Open Science.
    2. Justyna Żywiołek & Elena Roxana Tucmeanu & Alin Iulian Tucmeanu & Nicoleta Isac & Zahid Yousaf, 2022. "Nexus of Transformational Leadership, Employee Adaptiveness, Knowledge Sharing, and Employee Creativity," Sustainability, MDPI, vol. 14(18), pages 1-16, September.
    3. Bebenroth, Ralf & Thiele, Kai Oliver, 2015. "Identification to oneself and to the others: Employees' perceptions after a merger," Working Papers on East Asian Studies 106/2015, University of Duisburg-Essen, Institute of East Asian Studies IN-EAST.
    4. Alvarado-Vargas, Marcelo J. & Hermans, Michel & Newburry, William, 2020. "What’s in it for me? Local employees’ anticipated career opportunities derived from firm internationalization," Journal of Business Research, Elsevier, vol. 117(C), pages 201-211.
    5. Ardito, Lorenzo & Peruffo, Enzo & Natalicchio, Angelo, 2019. "The relationships between the internationalization of alliance portfolio diversity, individual incentives, and innovation ambidexterity: A microfoundational approach," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    6. Slađana Savović, 2021. "Employee Reactions To Cross-Border Acquisitions: Evidence From An Acquired Serbian Company," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 66(228), pages 43-68, January –.
    7. Nguyen Thi Bich Thuy & Phan Dang Ngoc Yen Van, 2020. "Employee Commitment to Organizational Change with the Role of Job Satisfaction and Transformational Leadership," Technium Social Sciences Journal, Technium Science, vol. 2(1), pages 1-17, January.
    8. Shanshan Ouyang & Yanxi Li, 2019. "Confucius Institute and the Completion of Chinese Cross-Border Acquisitions," Sustainability, MDPI, vol. 11(18), pages 1-22, September.
    9. Victor Ming Tak Ng & Emily Guohua Huang & Michael N. Young, 2019. "Should I stay or should I go? understanding employees’ decisions to leave after mergers in Hong Kong’s banking industry," Asia Pacific Journal of Management, Springer, vol. 36(4), pages 1023-1051, December.
    10. Xu, Kai & Hitt, Michael A. & Brock, David & Pisano, Vincenzo & Huang, Lulu S.R., 2021. "Country institutional environments and international strategy: A review and analysis of the research," Journal of International Management, Elsevier, vol. 27(1).
    11. 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.

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