Cross-border M&As: Theorizing the negative effect of political ideology mismatch with host country labor institutional context on employee outcomes

Negative employee behaviors (e.g., turnover and workplace deviance) can be pronounced during cross-border mergers and acquisitions (M&As), and they are often linked to their failure and suboptimal performance. Yet, thus far, M&A research has primarily focused on cultural clashes to account for such negative outcomes. Drawing on a multilevel perspective of role theory, we offer a conceptual framework that emphasizes the distinctiveness of cross-border M&As. We theorize how political ideology mismatch triggers psychological mechanisms that have important effects on employees’ attitudes and behaviors, and how the types of M&As and organizational justice perceptions could influence these psychological mechanisms. We contribute to advancing knowledge on employee outcomes in cross-border M&As by shedding light on how micro-relational dynamics interact with contextual factors to shape employees’ turnover and deviant workplace behaviors.