Lookup NU author(s): Dr Rekha Nicholson
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND).
This paper examines the impact of leadership on targets’ employee psychological safety (EPS), characterized by employees’ expectation of job and remuneration stability, during the cross-border mergers and acquisitions (M&As) by emerging market multinational companies (EMNEs). The M&As by Indian and Chinese companies forms the empirical context of this study and the case survey method is used to examine the effect of leadership on EPS. The results show that the EMNEs’ leadership visibility during the M&A process has no impact on the EPS, whereas, the trust in the EMNEs’ leadership has positive effect on the EPS. The deal status has a moderating effect on the leadership visibility and positively affects the EPS. This research finds evidence of target country differences in terms of the effect of EMNEs’ leadership on EPS and limited evidence of such effect for acquirer nationality differences.
Author(s): Rao-Nicholson R, Khan Z, Stokes P
Publication type: Article
Publication status: Published
Journal: International Business Review
Issue: 1 (part A)
Print publication date: 01/02/2016
Online publication date: 09/10/2015
Acceptance date: 21/09/2015
ISSN (print): 0969-5931
ISSN (electronic): 1873-6149
Publisher: Pergamon Press
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