International acquisitions: Retention of a target firm's key top personnel for social capital

Abstract

One of the most utilised strategic tactics by many organisations is to focus on international acquisitions in foreign markets to compete effectively in the current ever-changing dynamic competitive landscape. We suggest that the key top personnel of a previously successful target international firm is a valuable resource and needs to be retained for the local firm's continued success due to their social capital which was developed over time. This research focuses on the key top personnel (typically members of the top management team) and their value to the firm to help explain the variation in acquisition success. Thus, we argue that the key top personnel (KTP) need to be retained due to the value of their social capital.