What' s behind these contradictory findings? There is a well-established body of theory and research on
the challenges associated with combining peoples from different cultures. Social identity theory (Tajfel, 1981 ; Turner, 1982 ), contends that organization members
show a positive bias toward members of their own group and tend to hold in a
negative view about the members of an outgroup in order to enhance the relative standing of their own kind. This in-group bias and "US-versus-them" comparisons are greatest when there is a perceived external threat as is common in M & A activity and out when the goup is perceived to be very different from the in-group (Elsass & Veiga, 1994 ; Hogg & Terry, 2000). In an acquisition,cohesiveness among the members of the target firm is likely to increase and entreaties from the acquirer
are apt to be resisted.On the other hand, acquiring managers, from the stronger or larger company, are prone to adopt an attitude of superiority and treat the members of the target firm as inferior (CF.Hambrick & Cannella, 1993 ; Jemison & Sitkin, 1986 ). In cross-border deals,feelings of hostility and distrust may be further fueled by xenophobia and national cultural stereotyping (Krug & Nigh, 2001).
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