You're Fired! A Complex Adaptive Systems Perspective of Post-Merger and Acquisition Executive Turnover

Posted: 13 Jun 2011 Last revised: 1 Mar 2012

Jason Whan Park

City University of Hong Kong

Benoit Morel

Carnegie Mellon University

Kevin H. Kim

University of Pittsburgh - School of Education

Date Written: September 30, 2011

Abstract

Since the publication of Organization Science’s 1999 Special Issue on complexity theory, researchers have applied this paradigm to various organizational phenomena. In this paper, we examine post-merger and acquisition (M&A) executive turnover from a Complex Adaptive Systems (CAS) perspective. This lens integrates and subsumes the existing literature on this phenomenon, which is fragmented, incomplete, and lacking in an overarching theory. The observation of a power law distribution in target firm TMT rates for a sample of 70 U.S. acquisitions valued over US$ 1 billion from 1997 to 1999, at the height of the 1990s M&A wave, supports our interpretation.

Keywords: Mergers and acquisitions, executive turnover, power law, Complex Adaptive System, Self-organized criticality, top management team

JEL Classification: G34, J44, M51

Suggested Citation

Park, Jason Whan and Morel, Benoit and Kim, Kevin H., You're Fired! A Complex Adaptive Systems Perspective of Post-Merger and Acquisition Executive Turnover (September 30, 2011). Available at SSRN: https://ssrn.com/abstract=1863323

Jason Whan Park (Contact Author)

City University of Hong Kong ( email )

Room G7405, 7/F Academic Building
Department of Management, Tat Chee Avenue
Kowloon, Kowloon 220
Hong Kong
(852) 3442 7210 (Phone)
(852) 3442 0309 (Fax)

HOME PAGE: http://www.cb.cityu.edu.hk/Portfolio/Staff.cfm?EID=jwpark

Benoit Morel

Carnegie Mellon University ( email )

Pittsburgh, PA 15213-3890
United States

Kevin H. Kim

University of Pittsburgh - School of Education ( email )

United States

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