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How communication approaches impact mergers and acquisitions outcomes

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Article

Angwin, Duncan N. ; Mellahi, Kamel ; Gomes, Emanuel ; Peter, Emmanuel

International Journal of Human Resource Management

2016

27

19-20

November

2370-2397

merger ; workplace communication

Africa

Labour relations

http://dx.doi.org/10.1080/09585192.2014.985330

English

Bibliogr.

"Communication is generally viewed as a critical component in mergers and acquisitions (M&A) performance, yet surprisingly little research has examined the link between different communication approaches and M&A outcomes. This paper provides a systematic empirical study to evaluate the link between communication approaches and M&As outcome. Specifically, a typology is created to examine interaction between the process and content of communication and M&A outcomes, in terms of employee commitment to merged organization strategy and M&A survival. Using data drawn from a single clearly defined M&A wave in the Nigerian banking sector, different communication practices are related to M&A outcomes. The findings are the first to show the effects of communications practices in African M&A and answer the calls for extending M&A research beyond western developed countries. They confirm the importance of communication practices in M&A, extend earlier findings on the importance of post-acquisition integration communication in US and European contexts and show the importance of communicating throughout the whole M&A process. "

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