Economic Horizons (Aug 2022)

Managerial tacit knowledge transfer: A potential outcome of cross-border mergers and acquisitions in the GCC banking sector

  • Vladimir Dzenopoljac,
  • Oualid Abidi,
  • Abdul Rauf,
  • Ahmed Bani-Mustafa

DOI
https://doi.org/10.5937/ekonhor2202211D
Journal volume & issue
Vol. 24, no. 2
pp. 211 – 224

Abstract

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This conceptual paper explores the potential relationship between a manager’s contribution in sealing cross-border Merger and Acquisition (M&A) deals, on the one hand, and tacit knowledge transfer, on the other. The paper’s basic premise posits that those managers are likely to be exposed to significant tacit knowledge flows as they participate in negotiating, making, and monitoring M&A transactions. The two M&A dimensions taken into account in the conceptual model given in this paper pertain to the number and value of M&A transactions coordinated or accomplished by the manager. Furthermore, there are several moderating factors said to influence the central assumption between the number/value of M&As and the extent of tacit knowledge transfer, i.e. the frequency of face-to-face meetings, the manager’s cultural intelligence, the manager’s international experience and the number of the languages spoken by the manager. The examination of the research propositions underlying the suggested research model is believed to have a particular importance for the banking sector in the Gulf countries wherein the M&A activity is ubiquitous.

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