Executive perceptions in foreign and domestic acquisitions: An analysis offoreign ownership and its effect on executive fate

Foreign acquisitions account for one in every sir acquisitions in the Unite d Stares and lead to a variety of positive and negative outcomes for execut ives in acquired U.S. companies. They often enhance career opportunities an d enrich executives' international experiences bur increase the chances of being replaced. Despite an increasing number of foreign acquisitions in the U.S.A. during the last twenty years, we still know very little about the d iffering perceptions of executives involved in foreign versus domestic acqu isitions. A better understanding of such perceptions is important in light of the tendency of the popular press to focus on the negative aspects of fo reign acquisitions of U.S. companies and landmarks. We present a framework for understanding executives' perceptions based on surveys and interviews w ith 284 executives and discuss five areas where executive perceptions diffe r: (I) cultural differences, (2) system changes in the acquired company, (3 ) acquisition negotiations, (4) executives reasons for staying or leaving a fter the acquisition, and (5) postacquisition outcomes for the organization . Executives' perceptions differed significantly in each of these five area s depending on whether the executive was involved in a foreign or domestic acquisition.