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Tying the acquirer’s human resource management quality to cross-border acquisition divestment probability: Curvilinear connection with slacklining

Tying the acquirer’s human resource management quality to cross-border acquisition divestment probability: Curvilinear connection with slacklining
Tying the acquirer’s human resource management quality to cross-border acquisition divestment probability: Curvilinear connection with slacklining
Cross‐border acquisitions are growing in volume and global economic importance, yet a considerable number end in failure. Many of these failures may be linked to people management‐related issues. We extend this stream of research by investigating the impact of the acquirer's aggregate human resource management (HRM) quality on cross‐border acquisition divestment. Our empirical analysis uses a panel database of 4128 cross‐border acquisition/year observations and an event history design. The findings confirm a curvilinear relationship and suggest that acquisition failures are not merely associated with poor HRM quality, but also with very high levels of HRM quality, that is, with both extremes. Moreover, our results show that financial slack has a significant moderating effect on the curvilinear relationship between HRM quality and the likelihood of acquisition divestment. Overall, our study reveals boundary conditions for the widely demonstrated positive relationship between HRM quality and organizational performance in an acquisition context.
1045-3172
568-588
Avetisyan, E.
69ce8fe3-68be-4ab0-900f-8300c9361f95
Baruch, Y.
25b89777-def4-4958-afdc-0ceab43efe8a
Meschi, P.
c544aaca-8fd7-463e-a589-b1c061183186
Metais, E.
2fe16ac8-b084-4633-b528-6dcbff4dcb77
Norheim-Hansen, A.
6babe431-44b6-4391-8628-6ea97eff8aad
Avetisyan, E.
69ce8fe3-68be-4ab0-900f-8300c9361f95
Baruch, Y.
25b89777-def4-4958-afdc-0ceab43efe8a
Meschi, P.
c544aaca-8fd7-463e-a589-b1c061183186
Metais, E.
2fe16ac8-b084-4633-b528-6dcbff4dcb77
Norheim-Hansen, A.
6babe431-44b6-4391-8628-6ea97eff8aad

Avetisyan, E., Baruch, Y., Meschi, P., Metais, E. and Norheim-Hansen, A. (2020) Tying the acquirer’s human resource management quality to cross-border acquisition divestment probability: Curvilinear connection with slacklining. British Journal of Management, 31 (3), 568-588. (doi:10.1111/1467-8551.12403).

Record type: Article

Abstract

Cross‐border acquisitions are growing in volume and global economic importance, yet a considerable number end in failure. Many of these failures may be linked to people management‐related issues. We extend this stream of research by investigating the impact of the acquirer's aggregate human resource management (HRM) quality on cross‐border acquisition divestment. Our empirical analysis uses a panel database of 4128 cross‐border acquisition/year observations and an event history design. The findings confirm a curvilinear relationship and suggest that acquisition failures are not merely associated with poor HRM quality, but also with very high levels of HRM quality, that is, with both extremes. Moreover, our results show that financial slack has a significant moderating effect on the curvilinear relationship between HRM quality and the likelihood of acquisition divestment. Overall, our study reveals boundary conditions for the widely demonstrated positive relationship between HRM quality and organizational performance in an acquisition context.

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MA CSR for BJM As Accepted 29.2.20 - Accepted Manuscript
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Accepted/In Press date: 28 February 2020
e-pub ahead of print date: 11 April 2020

Identifiers

Local EPrints ID: 439171
URI: http://eprints.soton.ac.uk/id/eprint/439171
ISSN: 1045-3172
PURE UUID: a78a4b0c-87d2-4921-8462-17c697bb3b90
ORCID for Y. Baruch: ORCID iD orcid.org/0000-0002-0678-6273

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Date deposited: 06 Apr 2020 16:31
Last modified: 28 Apr 2022 06:12

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Contributors

Author: E. Avetisyan
Author: Y. Baruch ORCID iD
Author: P. Meschi
Author: E. Metais
Author: A. Norheim-Hansen

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