Title: Cross-border M&As and early subordinate-leader trust: a social identity approach

Authors: Diana W.P. Kwok

Addresses: EM Strasbourg Business School, Université de Strasbourg, HuManiS (UR 7308), Strasbourg, France

Abstract: Cross-border M&As are characterised by uncertainty and complexity, with identities and cultural differences that interconnect at multiple levels. This paper addresses subordinate-leader trust, an essential element for post-acquisition integration, and takes the perspective of the multicultural acquired-firm subordinate as the basic unit of analysis. Drawing on social identity and the concept of multiculturalism in M&As, it develops a model of trust in foreign-acquirer leaders based on ethnic similarity or religious similarity. The central argument is that ethnic and religious principles represent the work-related values of subordinates and leaders alike. The theoretical model offers an insight into the cognitive processes behind new subordinate-leader relationships that result from cross-border M&As. Factors that may be relevant to the context of post-acquisition integration are also suggested in order to explore the boundary conditions of the model.

Keywords: mergers and acquisitions; post-acquisition integration; subordinate-leader trust; social identity; multiculturalism; ethnic similarity; religious similarity.

DOI: 10.1504/EJIM.2024.138655

European Journal of International Management, 2024 Vol.23 No.2/3, pp.412 - 436

Accepted: 16 Jun 2020
Published online: 23 May 2024 *

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