Edited by Frank Horwitz and Pawan Budhwar
Chapter 6: Role of human resource management in international mergers and acquisitions and international joint ventures in emerging markets
All forms of international alliances (specifically, cross-border mergers and acquisitions, and international joint ventures) are cooperative arrangements/partnerships involving autonomous firms from different countries (Miller, Li, Eden and Hitt, 2008). Although important in today’s intensely competitive and global environment, they often face major coordination and integration challenges (Briscoe, Schuler and Tarique, 2012; Schuler, Jackson and Luo, 2004), particularly relating to the design, formulation and implementation of cooperation strategy (Lajara, Lillo and Sempere, 2003). It is thus important that international human resource management (IHRM) professionals pay particular attention to these issues, in order to contribute to the success of cooperative arrangements. In recent years, there has been a steady increase in international (or cross-border) acquisition and merger and international joint venture activity. This upsurge has been guided by the need to compete more successfully with other global firms through achieving world-class market entry and industry leadership and/or acquiring complementary assets and resources (usually technological and knowledge-based in nature) that would otherwise be too expensive, take too long, or just be impossible to develop internally (Briscoe et al., 2012). When an acquisition or a merger is the choice for entry into a new market, it is usually a quicker and more effective way to develop presence in a local market than to build such capability from scratch. At other times, forming an international joint venture may better serve the interests of two or more companies for a wide variety of reasons.
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