Abstract
It is becoming increasingly clear that post-merger and acquisition (M&A) performance, especially in terms of achieving the integration of merging firms, is strongly affected by organizational factors, such as leadership. This paper presents a theoretical model showing how alternative forms of charismatic leadership can be relevant to the implementation of M&As. A unique aspect of our conceptualization is that we recognize the distinction between charismatic leaders with more of a personalized versus socialized power motive, the behaviors emanating from each respective type, and likelihood of resulting effects on the post-combination organization of an M&A. We also propose that personalized charisma will result in an absorption strategy and accompanying stress, resistance to change, and turnover that vary in degree between acquiring and acquired firms. Conversely, socialized charisma will result in collaborative vision-formation and decision-making processes that will ultimately achieve transformation in both of the combining firms. We further argue that absorption strategies can result in effective integration of the target firm into the acquiring firm when the pre-merger condition of the former is unfavorable.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 130-142 |
| Number of pages | 13 |
| Journal | Leadership Quarterly |
| Volume | 20 |
| Issue number | 2 |
| DOIs | |
| State | Published - Apr 2009 |
Fingerprint
Keywords
- Charismatic leadership
- Mergers and acquisitions
- Strategic management
ASJC Scopus subject areas
- Business and International Management
- Organizational Behavior and Human Resource Management
- Applied Psychology
- Sociology and Political Science
Cite this
Alternative forms of charismatic leadership in the integration of mergers and acquisitions. / Waldman, David; Javidan, Mansour.
In: Leadership Quarterly, Vol. 20, No. 2, 04.2009, p. 130-142.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Alternative forms of charismatic leadership in the integration of mergers and acquisitions
AU - Waldman, David
AU - Javidan, Mansour
PY - 2009/4
Y1 - 2009/4
N2 - It is becoming increasingly clear that post-merger and acquisition (M&A) performance, especially in terms of achieving the integration of merging firms, is strongly affected by organizational factors, such as leadership. This paper presents a theoretical model showing how alternative forms of charismatic leadership can be relevant to the implementation of M&As. A unique aspect of our conceptualization is that we recognize the distinction between charismatic leaders with more of a personalized versus socialized power motive, the behaviors emanating from each respective type, and likelihood of resulting effects on the post-combination organization of an M&A. We also propose that personalized charisma will result in an absorption strategy and accompanying stress, resistance to change, and turnover that vary in degree between acquiring and acquired firms. Conversely, socialized charisma will result in collaborative vision-formation and decision-making processes that will ultimately achieve transformation in both of the combining firms. We further argue that absorption strategies can result in effective integration of the target firm into the acquiring firm when the pre-merger condition of the former is unfavorable.
AB - It is becoming increasingly clear that post-merger and acquisition (M&A) performance, especially in terms of achieving the integration of merging firms, is strongly affected by organizational factors, such as leadership. This paper presents a theoretical model showing how alternative forms of charismatic leadership can be relevant to the implementation of M&As. A unique aspect of our conceptualization is that we recognize the distinction between charismatic leaders with more of a personalized versus socialized power motive, the behaviors emanating from each respective type, and likelihood of resulting effects on the post-combination organization of an M&A. We also propose that personalized charisma will result in an absorption strategy and accompanying stress, resistance to change, and turnover that vary in degree between acquiring and acquired firms. Conversely, socialized charisma will result in collaborative vision-formation and decision-making processes that will ultimately achieve transformation in both of the combining firms. We further argue that absorption strategies can result in effective integration of the target firm into the acquiring firm when the pre-merger condition of the former is unfavorable.
KW - Charismatic leadership
KW - Mergers and acquisitions
KW - Strategic management
UR - http://www.scopus.com/inward/record.url?scp=61549088787&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=61549088787&partnerID=8YFLogxK
U2 - 10.1016/j.leaqua.2009.01.008
DO - 10.1016/j.leaqua.2009.01.008
M3 - Article
AN - SCOPUS:61549088787
VL - 20
SP - 130
EP - 142
JO - Leadership Quarterly
JF - Leadership Quarterly
SN - 1048-9843
IS - 2
ER -