Next Article in Journal
Environmental Assessment of Magnesium Oxychloride Cement Samples: A Case Study in Europe
Next Article in Special Issue
Method for Selecting the Safety Integrity Level for the Control-Command and Signaling Functions
Previous Article in Journal
Forecasting Hourly Power Load Considering Time Division: A Hybrid Model Based on K-means Clustering and Probability Density Forecasting Techniques
Previous Article in Special Issue
Search for Measure of the Value of Baltic Sustainability Development: A Meta-Review
Article

Influence of Interlocking Directorates on Integration after the Acquisition of Warsaw Stock Exchange—Listed Companies

Department of Management Systems and Innovation, Lodz University of Technology, Piotrkowska 266, 90-924 Łódź, Poland
Sustainability 2019, 11(24), 6955; https://doi.org/10.3390/su11246955
Received: 19 November 2019 / Revised: 2 December 2019 / Accepted: 3 December 2019 / Published: 6 December 2019
(This article belongs to the Special Issue Sustainable Value Management–New Concepts and Contemporary Trends)
Acquisition processes are aimed at achieving value based on synergistic effects. One of the most important obstacles in achieving value is the manner of conducting post-transaction integration—a risk area often ignored. This study assumes that a factor that may be important for the course of integration after the acquisition of enterprises may be the fact of personal connections through interlocking directorates between transaction partners of acquisitions. The research was carried out in two stages. The first was to identify the scope of connections by interlocking between WSE-listed companies participating in acquisition transactions. This stage was implemented using the social network analysis method (SNA) and covered 188 companies. In the second stage, research was conducted using semi-structured interview techniques with the CEOs of the acquiring companies. The aim of the study was to identify the relationship between personal relations and the course of post-transaction integration. The analysis focused primarily on two factors: the dynamics of integration activities and their centralization. The research covered 38 companies that were included in the sample in the first stage of the research (including 19 personally related companies and, for comparison, in 19 unrelated companies). Studies have shown that the fact of connecting through interlocking affects the post-transaction integration model in the analyzed group. The dynamically centralized model dominates in enterprises related by particular persons. Many integration activities are carried out in the first 100 days. The factor affecting the implemented integration model is the durability of connections between participants before and after the transaction is conducted and the position in the network of connections determined by such sociometric measures as the centrality of proximity and own vector. Enterprises connected with long-term relationships usually demonstrate high dynamics of integration activities, which are conducted by joint teams whose group employees represent each of the merging enterprises. In addition, the CEOs surveyed from this group of companies declare having an integration plan with different levels of detail in each case. View Full-Text
Keywords: company acquisitions in Poland; personal relations; model of post-transaction integration company acquisitions in Poland; personal relations; model of post-transaction integration
Show Figures

Figure 1

MDPI and ACS Style

Stankiewicz-Mróz, A. Influence of Interlocking Directorates on Integration after the Acquisition of Warsaw Stock Exchange—Listed Companies. Sustainability 2019, 11, 6955. https://doi.org/10.3390/su11246955

AMA Style

Stankiewicz-Mróz A. Influence of Interlocking Directorates on Integration after the Acquisition of Warsaw Stock Exchange—Listed Companies. Sustainability. 2019; 11(24):6955. https://doi.org/10.3390/su11246955

Chicago/Turabian Style

Stankiewicz-Mróz, Anna. 2019. "Influence of Interlocking Directorates on Integration after the Acquisition of Warsaw Stock Exchange—Listed Companies" Sustainability 11, no. 24: 6955. https://doi.org/10.3390/su11246955

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop