The Effect of Trust on Acquisition Success: The Case of Israeli Start-Up M&A

Piotr Trąpczyński, Ofer Zaks and Jan Polowczyk
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Piotr Trąpczyński: Department of International Competitiveness, Poznań University of Economics and Business, 61-875 Poznań, Poland
Ofer Zaks: Hadassah Academic College, Jerusalem 9101001, Israel
Jan Polowczyk: Department of International Competitiveness, Poznań University of Economics and Business, 61-875 Poznań, Poland

Sustainability, 2018, vol. 10, issue 7, 1-16

Abstract: Given the frequent failure of many M&A deals, the question of their sustainability is a critical one. Still, in existing literature, there is a visible emphasis on the perspective of the acquiring firm and its characteristics in affecting M&A performance. Moreover, the role of trust, both from the acquiring and acquired firms, has not received extensive attention to date. The present paper builds on a quantitative and qualitative study of Israeli high-tech start-ups acquired by international firms to explore the effects of trust on M&A success. Our study indicates that trust from acquired firm managers positively affects acquisition success, although trust from the acquiring firm (expressed with the autonomy that it leaves to the acquired firm) is not a significant predictor of acquisition success.

Keywords: trust; M&A sustainability; performance; start-ups; retained autonomy; mixed-method research (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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