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Contemporary Challenges to International Business pp 32–51Cite as

Palgrave Macmillan

Organizational Identification and Commitment Following a Cross-Border Acquisition

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Part of the book series: The Academy of International Business ((AIB))

Abstract

Cross-border mergers and acquisitions (M&As) have become common in the business world. Recent figures show that in 2006 the OECD countries witnessed the second highest level of foreign direct investment (FDI) flows and that estimates for 2007 would be close to those of 2000 — the record year for M&As (OECD, 2007). Cross-border acquisitions involve unique challenges, due to their various economic, institutional or regulatory and cultural structures (Child, Faulkner and Pitkethly, 2001). As cross-border acquisitions are challenging for managers, they provide a fruitful research arena for scholars. Many of the acquisitions made during the past decade appear to have been motivated by the need for firms to obtain critical technologies or capabilities (Ranft and Lord, 2000). Since the 1990s, acquisitions have increased dramatically in high-technology sectors (Ranft and Lord, 2002). Intangible assets such as knowledge are very important as they can even determine the success of a company, especially after mergers and acquisitions. In knowledge-intensive and innovation-driven industries, highly skilled human resources may represent one of the most valuable strategic resources in a specific company (Ranft and Lord, 2000). Nevertheless, if the primary objective of an acquisition is the acquisition of valuable knowledge, a subsequent departure of key personnel can affect the success of the acquisition (Hubbard, 1999; Ranft and Lord, 2000).

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Authors
  1. Mélanie Elina Raukko
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Editor information

Editors and Affiliations

  1. University of Strathclyde, UK

    Kevin Ibeh (Professor of Marketing and International Business) (Professor of Marketing and International Business)

  2. University of Portsmouth, UK

    Sheena Davies (Senior Lecturer in Strategic Management) (Senior Lecturer in Strategic Management)

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© 2009 Mélanie Elina Raukko

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Raukko, M.E. (2009). Organizational Identification and Commitment Following a Cross-Border Acquisition. In: Ibeh, K., Davies, S. (eds) Contemporary Challenges to International Business. The Academy of International Business. Palgrave Macmillan, London. https://doi.org/10.1057/9780230237322_3

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