No open-access location is known for this record yet.
No open-access location is known for this record yet.
Mergers and acquisitions (MA King et al., 2004). More specifically, these meta-analyses speculated that critical acquisition integration factors such as top management team turnover may help explain differences in performance outcomes. On the surface, this seems a reasonable explanation as acquired firms lose about two-thirds of their executives within the first five years after they are acquired, a statistic in excess of twice the normal rate of executive turnover (Walsh, 1988). Departures are recorded at even higher levels when the acquiring firm is a foreign multinational (Krug and Hegarty, 1997). The importance of top management team (TMT) turnover for acquisition performance increasingly has received attention in the academic literature despite different theoretical perspectives regarding the importance of the acquired top management team. Research from the market for corporate control perspective suggests the need to prune managerial deadwood in a newly acquired firm to improve the financial health of the firm (Walsh and Ellwood, 1991). Other research from a resource-based perspective argues that acquired managers may in fact be important to retain, at least during the integration of an acquired firm to ensure positive performance outcomes (Bergh, 2001; Ranft and Lord, 2002). Given these differing theoretical foundations and the variability of acquisition performance, several scholars have pursued empirical examination of the impact of top management team turnover on the performance of acquisitions (e.g., Cannella and Hambrick, 1993; Walsh and Ellwood, 1991; Ranft and Lord, 2000). In this paper, meta-analysis is employed to test these two differing perspectives. Meta-analysis allows one to review and synthesize the empirical research to date that tests and reports findings regarding the relationship between acquired top management team turnover and subsequent acquisition performance. In subsequent sections, the literature for the market for corporate control perspective and the resource-based view is reviewed, as it pertains to acquired top management team turnover. Next, the methods and results of the meta-analysis are described. Lastly, the paper concludes with a discussion of the results and implications for future research and practice. TOP MANAGEMENT TEAM TURNOVER AND ACQUISITION PERFORMANCE Much of the research on TMT turnover in an acquisition context centers on two theoretical viewpoints: (1) the market of corporate control perspective and (2) the resource-based view. The subsequent sections discuss each of these views and their implications with regard to TMT turnover in an M&A context. …
Loading…
Imported from OpenAlex (CC0) — nothing here is generated.