Antecedents of Target Firm Members' Trust in the Acquiring Firm's Management: A Decision-Making Simulation

Günter K. Stahl, Chei Hwee Chua, Amy L. Pablo

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

Prior research on post-acquisition integration has paid little attention to the factors that influence the development of trust between the members of an acquiring firm and those of the target firm. Using a policy capturing approach, we found that five aspects of the takeover situation and the integration process affect target firm members' trust in the acquiring firm's management: takeover friendliness, national cultural similarity, interaction history of the acquiring firm and the target firm, retained autonomy, and attractiveness of the acquiring firm's HR policies. Our findings suggest that of the five trust antecedents, the attractiveness of the acquirer's HR policies is by far the most powerful predictor of target firm members' trust in the acquiring firm's management. The implications for post-acquisition integration research and practice are discussed.

Original languageEnglish (US)
Pages (from-to)69-89
Number of pages21
JournalAdvances in Mergers and Acquisitions
Volume5
DOIs
StatePublished - 2006
Externally publishedYes

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Simulation
Decision making
Attractiveness
Predictors
Policy capturing
Autonomy
Integration process
Interaction
Influence factors

ASJC Scopus subject areas

  • Business and International Management

Cite this

Antecedents of Target Firm Members' Trust in the Acquiring Firm's Management : A Decision-Making Simulation. / Stahl, Günter K.; Hwee Chua, Chei; Pablo, Amy L.

In: Advances in Mergers and Acquisitions, Vol. 5, 2006, p. 69-89.

Research output: Contribution to journalArticle

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