The Culture–Performance Relationship in M&A: From Yes/No to How

Do cultural differences have an impact on the performance of M&A? Despite the widely accepted myth that they do, and in a negative way, a review of extant research provides contradictory findings. In this article, we explore reasons for this contradiction and propose solutions in the form of propositions and a theoretical framework. We begin with a brief overview of extant research on the culture‐performance relationship in M&A. In light of the contradictions emerging from this review, we move on to identifying three areas of complexity explaining this confusion, and for each one, we suggest propositions to guide future research. We then summarize our argument using a theoretical framework. Because of the long‐term and dynamic nature of the M&A process, we argue that instead of studying the simple performance impact of cultural differences in M&A, we should move on to thinking how cultural differences impact on the M&A process and its outcome.     

VERTICAL INTEGRATION AND TECHNOLOGY: THEORY AND EVIDENCE

We study the determinants of vertical integration. We first derive a number of predictions regarding the relationship between technology intensity and vertical integration from a simple incomplete contracts model. Then, we investigate these predictions using plant‐level data for the UK manufacturing sector. Most importantly, and consistent with the theoretical predictions, we find that the technology intensity of downstream (producer) industries is positively correlated with the likelihood of integration whereas the intensity of upstream (supplier) industries is negatively correlated with it. Also consistent with theory, both correlations are stronger when the supplying industry accounts for a large fraction of the producer's costs. These results are generally robust and hold with alternative measures of technology intensity, with alternative estimation strategies, and with or without controlling for a number of firm‐ and industry‐level characteristics. (JEL: L22, L23, L24, L60)     

Two-step values for games with two-level communication structure

TU games with two-level communication structure, in which a two-level communication structure relates fundamentally to the given coalition structure and consists of a communication graph on the collection of the a priori unions in the coalition structure, as well as a collection of communication graphs within each union, are considered. For such games we introduce two families of two-step values inspired by the two-step procedures staying behind the Owen value (Owen, in: Henn, Moeschlin (eds) Essays in mathematical economics and game theory, Springer, Berlin, pp 76–88, 1977) and the two-step Shapley value (Kamijo in Int Game Theory Rev 11:207–214, 2009) for games with coalition structure. Our approach is based on the unified treatment of several component efficient values for games with communication structure and it generates two-stage solution concepts that apply component efficient values for games with communication structure on both distribution levels. Comparable axiomatic characterizations are provided.     

Work-related episodic memories can increase or decrease motivation and psychological health at work

ABSTRACT

Research on the psychological mechanisms underlying employee motivation and psychological health at work has been limited to general and chronic workplace factors, such as job strenuousness or management style. In two studies, we examine how unique and time-specific work life events encoded as episodic memories can influence employee motivation and psychological health at work as a function of how these events are recalled having been experienced in terms of need satisfaction. In Study 1, participants described a self-defining work-related memory and rated it for need satisfaction. They also completed scales of need satisfaction at work, self-determined motivation, and positive and negative indicators of psychological health (i.e. work satisfaction and burnout). In Study 2, participants completed the same tasks and scales, but they did it again two years later. Results revealed that need satisfaction in self-defining work-related memories was associated with self-determined motivation and indicators of psychological health at work, over and above demographics (age, sex, weekly hours worked, education) and general perceptions of need satisfaction at work. Moreover, it predicted increases in self-determined motivation and in work satisfaction and decreases in burnout over two years. The present findings underscore the importance of considering unique work life events encoded in memory.     

Disruptions in tightly coupled supply chain networks: the case of the US offshore oil industry

Managers have paid increasing attention to the exposure of their supply chains to disruptions and seek ways to mitigate supply chain vulnerability. The interconnectedness of tightly coupled supply chain networks makes this a challenging task, because interconnectedness and tight coupling of nodes in the network lead to an amplification of the actual risk exposure. This phenomenon can be attributed to the propagation of losses through the network, which exhibits certain dynamics. In order to investigate this mechanism, we studied the complex supply chain network of the oil industry in the Gulf of Mexico. Our results provide an estimate of the economic impact of eventual random and hurricane-related disruptions and can be used as a decision support tool for risk management of supply disruptions in interconnected supply chain networks.     

Management innovation: a dynamic analysis of the implementation phase over time

Abstract

We develop management innovation theory, providing insights into the role of time in the implementation phase. The management innovation literature has sought to empirically identify factors that facilitate or hinder management innovation implementation from a static perspective. To address the evolution of these factors’ resistance, a temporal perspective is appropriate, but an analysis of these factors’ evolution over time is lacking. We identify the inhibiting factors that influence the management innovation implementation phase over time and address ways in which they evolve.We conduct a comparative longitudinal and dynamic analysis based on two intermediate-sized enterprises and address the obstacles that emerge during the implementation phase of a specific management innovation: lean manufacturing. Our results highlight different categories of inhibiting factors: some inhibiting factors appear at the beginning of the implementation phase with high intensity and then fade over time; conversely, other inhibiting factors appear later and then increase in intensity.     

The EWMA sign chart revisited: performance and alternatives without and with ties

The EWMA Sign control chart is an efficient tool for monitoring shifts in a process regardless the observations'' underlying distribution. Recent studies have shown that, for nonparametric control charts, due to the discrete nature of the statistics being used (such as the Sign statistic), it is impossible to accurately compute their Run Length properties using Markov chain or integral equation methods. In this work, a modified nonparametric Phase II EWMA chart based on the Sign statistic is proposed and its exact Run Length properties are discussed. A continuous transformation of the Sign statistic, combined with the classical Markov Chain method, is used for the determination of the chart''s in- and out-of-control Run Length properties. Additionally, we show that when ties occur due to measurement rounding-off errors, the EWMA Sign control chart is no longer distribution-free and a Bernoulli trial approach is discussed to handle the occurrence of ties and makes the proposed chart almost distribution-free. Finally, an illustrative example is provided to show the practical implementation of our proposed chart.     

The informed society: an analysis of the public's information-seeking behavior regarding coastal flood risks

Recent flood risk management puts an increasing emphasis on the public's risk perception and its preferences. It is now widely recognized that a better knowledge of the public's awareness and concern about risks is of vital importance to outline effective risk communication strategies. Models such as Risk Information Seeking and Processing address this evolution by considering the public's needs and its information-seeking behavior with regard to risk information. This study builds upon earlier information-seeking models and focuses on the empirical relationships between information-seeking behavior and the constructs of risk perception, perceived hazard knowledge, response efficacy, and information need in the context of coastal flood risks. Specific focus is given to the mediating role of information need in the model and to the differences in information-seeking behavior between permanent and temporary residents. By means of a structured on-line questionnaire, a cross-sectional survey was carried out in the city of Ostend, one of the most vulnerable places to coastal flooding on the Belgian coast. Three hundred thirteen respondents participated in the survey. Path analysis reveals that information need does not act as a mediator in contrast to risk perception and perceived knowledge. In addition, it is shown that risk perception and perceived hazard knowledge are higher for permanent than temporary residents, leading to increased information-seeking behavior among the former group. Implications for risk communication are discussed.     

Mortalité par âge et cause de décès en Suisse: Une analyse des disparités cantonales durant la période 1978/83 à 1988/93

Au cours des années 1980, la Suisse a vu son espérance de vie à la naissance augmenter dans tous les cantons, mais à des rythmes très différents. Ces caractéristiques cantonales du niveau et de l'évolution de la mortalité sont décrites par des méthodes de décomposition développées par Pollard et Arriaga. Les rythmes d'évolution des cantons sont comparés et les spécificités observées sont expliquées par une répartition des différences entre les tables de mortalité, selon l'âge et la cause de décès qui contribuent à ces différences. Les résultats montrent notamment le rôle prépondérant des âges actifs et avancés sur l'évolution récente de la mortalité, et l'importance du SIDA et des morts violentes sur les disparités cantonales. L'analyse se conclut par une discussion des principaux résultats obtenus. During the 1980s, expectation of life at birth increased in all the Swiss cantons, but at very different tempi. The characteristics of the level and trends of mortality in the cantons are described here by the decomposition methods developed by Pollard and Arriaga. The pace of the development of mortality in the cantons is compared, and the particular characteristics observed are accounted for by life table analysis according to age and cause of death. The results show in particular the dominant role played at economically active ages and beyond in recent mortality trends, and the importance of AIDS and of violent deaths in accounting for differences between cantons. The analysis is concluded by a discussion of the main results obtained.     

ABC Shadow algorithm: a tool for statistical analysis of spatial patterns

This paper presents an original ABC algorithm, ABC Shadow, that can be applied to sample posterior densities that are continuously differentiable. The proposed algorithm solves the main condition to be fulfilled by any ABC algorithm, in order to be useful in practice. This condition requires enough samples in the parameter space region, induced by the observed statistics. The algorithm is tuned on the posterior of a Gaussian model which is entirely known, and then, it is applied for the statistical analysis of several spatial patterns. These patterns are issued or assumed to be outcomes of point processes. The considered models are: Strauss, Candy and area-interaction.