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: Chapter in Book/Report/Conference proceedingChapter

12 Scopus citations

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)
Title of host publicationAdvances in Mergers and Acquisitions
EditorsCary Cooper, Sydney Finkelstein
Pages69-89
Number of pages21
DOIs
StatePublished - May 16 2006

Publication series

NameAdvances in Mergers and Acquisitions
Volume5
ISSN (Print)1479-361X

ASJC Scopus subject areas

  • Business and International Management

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    Stahl, G. K., Chua, C. H., & Pablo, A. L. (2006). Antecedents of Target Firm Members' Trust in the Acquiring Firm's Management: A Decision-Making Simulation. In C. Cooper, & S. Finkelstein (Eds.), Advances in Mergers and Acquisitions (pp. 69-89). (Advances in Mergers and Acquisitions; Vol. 5). https://doi.org/10.1016/S1479-361X(06)05004-6