The effect of leadership style on talent retention during Merger and Acquisition integration: evidence from China

Zhang, Jiali; Faisal Ahammad, Mohammad; Tarba, Shlomo; Cooper, Cary L.; Glaister, Keith W.; Wang, Jiinmin

Abstract

Leadership and talent retention are critical HR-related components in post-merger and acquisition (M&A) integration, but the extent to which these factors interact with each other and eventually contribute to the success of post-M&A integration is under-explored. The present study investigates the effect of leadership styles on talent retention strategies and on the effectiveness of post-M&A integration in a Chinese context. Based on in-depth examination of an M&A case study, we propose that an authoritative, coaching, task-focused and relationship-focused approach has a positive influence on talent retention and effective post-M&A integration in a Chinese context. As far as talent retention strategies are concerned, authoritative leaders use communication, whereas leaders adopting a coaching style use an incentive structure to positively influence talent retention. Furthermore, task-focused leaders use position and performance in order to identify and retain talented employees. By contrast, relationship-focused leaders emphasize the guanxi network, communication and an incentive structure in their strategies of talent retention.

Citation

Zhang, J., Faisal Ahammad, M., Tarba, S., Cooper, C. L., Glaister, K. W., & Wang, J. (2015). The effect of leadership style on talent retention during Merger and Acquisition integration: evidence from China. International Journal of Human Resource Management, 26(7), 1021-1050. https://doi.org/10.1080/09585192.2014.908316

• Journal Article Type: Article
• Acceptance Date: May 2, 2014
• Online Publication Date: May 2, 2014
• Publication Date: Apr 12, 2015
• Deposit Date: Jun 27, 2018
• Journal: International Journal of Human Resource Management
• Print ISSN: 0958-5192
• Electronic ISSN: 1466-4399
• Publisher: Routledge
• Peer Reviewed: Peer Reviewed
• Volume: 26
• Issue: 7
• Pages: 1021-1050
• DOI: https://doi.org/10.1080/09585192.2014.908316
• Keywords: human resource management, leadership styles, post-merger integration, talent retention
• Public URL: https://nottingham-repository.worktribe.com/output/1097807
• Publisher URL: https://www.tandfonline.com/doi/abs/10.1080/09585192.2014.908316