Managing the retention of key employees in international acquisitions : a multiple case study

Abstract

How do we retain key employees in international acquisitions? Drawing from international business and human resource management literature, this study develops an integrated conceptual framework that identifies the factors enabling the retention of key employees in international acquisitions (IAs) as effective leadership, financial and non-financial benefits, effective communication, autonomy granted to the employees of acquired unit, and level and speed of integration of acquired unit. The findings from three case studies show that effective leadership of the acquirer, both financial and non-financial incentives, effective communication, high autonomy granted to the employees of the acquired unit, and moderate level and speed of integration of the acquired unit help in retaining key employees of the acquired unit. This study also discusses the implications for both researchers and practitioners.