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The effect of pre- and post-merger factors on the performance of mergers in Libyan government banks

The aim of the study is to investigate the impact of pre-merger and post-merger factors on the performance of mergers in Libyan government banks. Specifically, the study examines motivations behind Libyan banking mergers, and the influence of strategic fit, organisational cultural fit, speed of integration, and effectiveness of integration on the performance of mergers among Libyan government banks. The main conceptual framework was based on three different schools of thoughts: strategic management school, the process school and the organisational behavioural school. The theoretical model was examined through a cross-sectional research design i.e. structured questionnaire. Questionnaire data were collected from 169 managers in Libyan government banks. The findings reveal that mergers by government banks are seen primarily as a means to increase market power, to be able to compete with foreign banks, to enable faster entry to market and acquire organisational know-how. The findings also indicate that the organisational cultural fit improves the chances of merger performance. In addition, strategic complementarity positively influences cultural fit and integration effectiveness as well as merger performance. Finally, the findings indicate that merger performance is positively influenced by strategic complementarity, effectiveness of integration, and the speed of integration. Prior researchers primarily examined the impact of pre-merger factors and post-mergers factors separately. This study contributes to the existing literature by developing and empirically testing an integrative and holistic conceptual framework explaining the influence of pre-merger and post-merger factors on the performance of banking mergers. Hence, outcome of the study would bring clarity in understanding the relationship between different factors influencing merger performance.

Identiferoai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:692802
Date January 2015
CreatorsSalama, H.
PublisherNottingham Trent University
Source SetsEthos UK
Detected LanguageEnglish
TypeElectronic Thesis or Dissertation
Sourcehttp://irep.ntu.ac.uk/id/eprint/28282/

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