Retaining acquired executives through action

Heather R. Parola

doi:10.1108/JSMA-05-2024-0095

2024-11-25

PRE

Heather R. Parola *

DOI：10.1108/JSMA-05-2024-0095

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摘要

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Purpose - This study explores the effects of relative size on target executive turnover, and how acquiring managers can promote the retention of key employees through procedural justice, informational justice and corporate commitment. Design/methodology/approach - Multiple regression analysis is used to analyze relationships across 113 domestic acquisitions from 2008 to 2014 using both primary and secondary data. Findings - Results indicate that target executives are more likely to depart the combined firm in deals of greater relative size, but that acquiring executives can initiate actions to minimize turnover. Results show that acquiring executives that demonstrate procedural justice and informational justice can minimize turnover in deals of larger relative size while acquiring executives that demonstrate corporate commitment to the acquisition can minimize turnover regardless of firm size. Originality/value - Literature on target executive turnover currently examines why such turnover occurs and the consequences of turnover. Building upon the theory of relative standing, this study provides evidence that target executive turnover is increased in deals of larger relative size, but that acquiring managers can initiate actions to prevent such turnover. Specifically, procedural justice, informational justice and corporate commitment during integration are found to have minimizing effects on target executive turnover.

Keyword:

Acquisition

Top management teams

Retention

Justice

Corporate commitment