Leveraging brand-specific transformational leadership as corporate brand identity for M&A performance in an emerging market

Abstract

As mergers and acquisitions (M&A) increasingly become a staple in emerging markets, understanding the role of leadership in these activities is paramount. Despite the proliferation of research on M&A integration and leadership's impact on performance, there is a notable scarcity of studies that integrate these elements into a unified framework, particularly within non-Western contexts. Addressing this gap, this study constructs and empirically tests a framework that evaluates the influence of brand-specific transformational leadership (TFL) on M&A performance in China. Utilizing a sample of 295 respondents from B2B markets, the research confirms the significant role of brand-specific TFL in enhancing M&A integration. A direct correlation was established between the degree of integration and improved employee satisfaction and engagement, reduced top management team (TMT) turnover, and overall M&A success. However, the speed of integration did not show a significant impact on these outcomes. These findings underscore the critical role of transformational leadership in shaping successful M&A strategies, particularly in emerging markets. The study not only contributes to the theoretical understanding of how specific leadership styles influence M&A outcomes but also offers practical guidance for corporations in emerging economies to design more effective integration strategies by focusing on leadership development and branding alignment.