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A Sociocultural Perspective on Knowledge Transfer in Mergers and Acquisitions

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In this paper, the role of sociocultural interfirm linkages, HR flexibility, and organizational cultural differences in M&As are further elucidated, and it is argued that HR flexibility (flexibility in employee skills, flexibility in employee behavior, and flexibility in HR practices) is vital for the development of the above-mentioned soci-ocultural links.
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This article is published in Journal of Management.The article was published on 2016-07-01 and is currently open access. It has received 180 citations till now. The article focuses on the topics: Sociocultural perspective & Flexibility (personality).

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Book ChapterDOI

Firm Resources and Sustained Competitive Advantage

TL;DR: In this article, the authors examined the link between firm resources and sustained competitive advantage and analyzed the potential of several firm resources for generating sustained competitive advantages, including value, rareness, imitability, and substitutability.
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The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage

TL;DR: In this paper, the authors argue that an increasingly important unit of analysis for understanding competitive advantage is the relationship between firms and identify four potential sources of interorganizational competitive advantage: relation-specific assets, knowledge-sharing routines, complementary resources/capabilities, and effective governance.
Book

Working Knowledge: How Organizations Manage What They Know

TL;DR: The definitive primer on knowledge management, this book will establish the enduring vocabulary and concepts and serve as the hands-on resource of choice for fast companies that recognize knowledge as the only sustainable source of competitive advantage.
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Not So Different After All: A Cross-Discipline View Of Trust

TL;DR: In this article, the authors adopt a multidisciplinary view of trust within and between firms, in an effort to synthesize and give insight into a fundamental construct of organizational science, while recognizing that the differing meanings scholars bring to the study of trust also can add value.
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Organizational Culture: Can It Be a Source of Sustained Competitive Advantage?

TL;DR: In this article, three attributes that a firm's culture must have to generate sustained competitive advantages are isolated, and the normative implications of the analysis are discussed, and it is shown that firms that do not have these attributes can engage in activities that will modify their cultures and generate sustained superior financial performance because their modified cultures typically will be neither rare nor imperfectly imitable.
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Frequently Asked Questions (9)
Q1. What are the contributions mentioned in the paper "A sociocultural perspective on knowledge transfer in mergers and acquisitions" ?

The present article contributes to the M & A literature by further clarifying the multifaceted role of these sociocultural factors in M & As. The authors suggest that sociocultural interfirm linkages ( complementary employee skills, trust, collective teaching, and cultural integration ) between the merging firms influence the level of knowledge transfer in M & As. Furthermore, the authors argue that HR flexibility ( flexibility in employee skills, flexibility in employee behavior, and flexibility in HR practices ) is vital for the development of the above-mentioned sociocultural interfirm linkages in M & As. 

Their model offers several avenues for further research. The authors recommend that future empirical studies test for these kinds of moderating effects, or at least control for the effect of such variables. Finally, future research can extend the concept of HR flexibility to include “ external ” aspects. The authors hope that their study furthers a more comprehensive understanding of the multifaceted role of sociocultural factors in M & As, and that it will inspire further theoretical and empirical studies on sociocultural aspects in this context. 

The authors suggest that resource and coordination flexibility in employee behavior facilitate the effective governance of M&As by supporting cultural integration. 

For instance, comprehensive use of reward systems that provide an incentive to comply with core norms and values is an important mechanism for social control (O’Reilly & Chatman, 1996). 

Resource flexibility in employee behavior refers to the extent to which employees of the merging firms are willing to perform a broad range of alternative work activities during the integration process, whereas coordination flexibility in employee behavior in M&As captures the ability of merging firms to deploy employees who are willing to apply a broad range of behavioral scripts to a wide variety of work activities that support the integration process. 

“Human due diligence” can also help the acquirer evaluate the attitudes of target firm members (Harding & Rouse, 2007) that are likely to affect the degree of flexibility in the behavior of target firm employees. 

The broader the range of alternative work activities that employees can perform, the greater the likelihood of complementarity in employee skills across the merging firms. 

The authors propose that organizational cultural differences have a negative effect on resource and coordination flexibility in employee behavior. 

To apply the conceptualization of HR flexibility to the M&A context (Way et al., 2015; Wright & Snell, 1998), the authors define HR flexibility as the capability of the merging firms to quickly adapt their HR to changing conditions during M&A integration.