Title: Key HRM strategies for M&A integration in the global banking industry: a comparative study of the USA, Europe and South America

Authors: Yongsun Paik; Jennifer S. Belcher

Addresses: Department of Management, Loyola Marymount University, One LMU Drive, Los Angeles, CA 90045, USA. ' 2307 Fenton Parkway #107-21, San Diego, CA 92108, USA

Abstract: Based on in-depth interviews with over ten major banks and financial corporations in the USA, Europe, and South America, this paper identifies the main reasons for the more effective post-merger integration strategy of European and South American banks than that of their US counterparts. Overall, we found that human resource managers are essential to the M&A integration process in Europe and South America owing to the influence of labour laws in those regions. In particular, substantial differences were noted in the retention strategy and negotiation process regarding compensation between the USA and both European and South American banks.

Keywords: human resource management; HRM strategies; M&A integration; global banking; United States; USA; Europe; South America; mergers and acquisitions; banking industry; retention strategy; international management; compensation negotiation process; labour laws.

DOI: 10.1504/EJIM.2012.050422

European Journal of International Management, 2012 Vol.6 No.6, pp.676 - 696

Published online: 22 Nov 2014 *

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