HR Science Forum
Trust dynamics in acquisitions: A case survey
Article first published online: 28 SEP 2011
© 2011 Wiley Periodicals, Inc.
Human Resource Management
Special Issue: Special Issue: Mergers and Acquisitions: Part 1
Volume 50, Issue 5, pages 575–603, September/October 2011
How to Cite
Stahl, G. K., Larsson, R., Kremershof, I. and Sitkin, S. B. (2011), Trust dynamics in acquisitions: A case survey. Hum. Resour. Manage., 50: 575–603. doi: 10.1002/hrm.20448
- Issue published online: 28 SEP 2011
- Article first published online: 28 SEP 2011
- mergers and acquisitions;
- postmerger integration;
- case survey
Drawing on the organizational trust literature and research on postmerger integration, the authors develop a model that conceptually synthesizes the antecedents and consequences of trust in acquired organizations. The model proposes that the acquiring and target firms' relationship history, the interfirm distance, and the acquirer's integration approach will affect target firm member trust in the acquiring firm's management. Target firm member trust, in turn, may influence several sociocultural integration outcomes as well as postacquisition performance. The results of a case survey suggest that certain aspects of the relationship history and interfirm distance, such as the firms' collaboration history and preacquisition performance differences, are poor predictors of trust, whereas integration process variables, such as speed of integration, communication quality, and acquirer multiculturalism are major factors influencing trust. The implications for postmerger integration research and practice are discussed. © 2011 Wiley Periodicals, Inc.