Does National Context Affect Target Firm Employees' Trust in Acquisitions? A Policy-Capturing Study

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

Research output: Contribution to journalArticlepeer-review

33 Scopus citations


In this study, we test the assumption that the way target firm employees respond to a takeover is contingent on their national origin. The antecedents of target firm member trust in the acquiring firm management were examined in a cross-national sample of German and Singaporean employees using a policy-capturing design. Five factors hypothesized to affect target firm member trust after a takeover were found to be significant influences on employees' trust judgments in a decision-making simulation: (i) combining firms' collaboration history, (ii) mode of takeover, (iii) whether it was a domestic or cross-border acquisition, (iv) degree of autonomy removal, and (v) attractiveness of the acquiring firm's human resource policies and reward system. Further analyses suggest that the relative importance of these factors in predicting target firm employees' reactions to a takeover varies depending on their national origin. We conclude that companies engaged in cross-border acquisitions need to consider contingencies in the cultural and institutional contexts in which the acquired firms are embedded and adapt their approaches for integrating them accordingly.

Original languageEnglish (US)
Pages (from-to)395-423
Number of pages29
JournalManagement International Review
Issue number3
StatePublished - Jun 2012
Externally publishedYes


  • Cross-border mergers and acquisitions
  • Hierarchical linear modeling
  • Policy-capturing
  • Post-acquisition integration
  • Trust

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management


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