An Exploration of Korean Advertising Agencies After Integration into Global Communication Groups
0
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
Although Mergers and Acquisitions (M&As) have long been standard practice in the advertising industry, there has been a dramatic increase in their occurrence both in the United States and internationally in recent years. Korea, the seventh largest advertising market, has not been excluded from this global M&A trend. While much research has focused on M&As from the perspective of organizations, not much emphasis has been given to the human side of M&As, even though it is thought to be important for the success of the newly merged unit. This study focuses on the attitudes and perceptions of possible changes in work culture and tasks by professional employees from four Korean advertising agencies recently acquired by global groups. A total of 96 surveys were completed by professional employees from three departments (Account Management, Creative, Media). Comparisons are made between professionals from different departments, different agencies, and the number of years at an agency. In the results, it was found that many employees have been stressful regarding their English skill and newly initiated some efforts to improve their English proficiency. In addition, most of the participants answered that their loyalty to the companies has been comparatively decreased after the M&A. Finally, among diverse departments,Account managers have been taking advantage of the M&As most for ecruiting new clients who generally expect that they could get some extra benefits from Global networks.
Abstract
Although Mergers and Acquisitions (M&As) have long been standard practice in the advertising industry, there has been a dramatic increase in their occurrence both in the United States and internationally in recent years. Korea, the seventh largest advertising market, has not been excluded from this global M&A trend. While much research has focused on M&As from the perspective of organizations, not much emphasis has been given to the human side of M&As, even though it is thought to be important for the success of the newly merged unit. This study focuses on the attitudes and perceptions of possible changes in work culture and tasks by professional employees from four Korean advertising agencies recently acquired by global groups. A total of 96 surveys were completed by professional employees from three departments (Account Management, Creative, Media). Comparisons are made between professionals from different departments, different agencies, and the number of years at an agency. In the results, it was found that many employees have been stressful regarding their English skill and newly initiated some efforts to improve their English proficiency. In addition, most of the participants answered that their loyalty to the companies has been comparatively decreased after the M&A. Finally, among diverse departments,Account managers have been taking advantage of the M&As most for ecruiting new clients who generally expect that they could get some extra benefits from Global networks.
참고문헌 (76)
- AD Times, "M&A in Korean Ad Agencies", 45~49 (2004)
- Agency Report, "Advertising Age", ~ (2005)
- Agency Report, "Advertising Age", ~ (2003)
- Advertising Age Annual, "Ad agency mergers in high gear", Media Decisions, pp.59~63 (1978)
- Advertising Age, "The WPP Group", ~ (2002)
- Advertising Age, "WPP Sits at the Top", ~ (2000)
- Advertising Age, "Clients Conflict", ~ (2001)
- Report:Advertising Agencies, "Advertising Information", ~ (2004)
- Asian market research news, "WPP invests in South Korean advertising market Growth", ~ (2002)
- "Levy weighs scenarios for Publicis: Post merger" (2002)[URL]
- Bantz, C. R., "The news factory. In: Social meaning of news: A text reader" (1997), Thousand Oaks, CA: Sage
- Bernstein, P, "Here come the super agencies", Fortune, pp.46~54 (1979)
- Bligh, M. C, "From Culture clash to integration: The role of leadership in transforming post-merger employee identification", Dissertation abstracts International Section A: Humanities and social Sciences, 63(1), pp.264~ (2002)
- Bloor, G, "Understanding professional culture in organizational context", Organization Studies, 15(2), pp.275~295 (1994)
- Buono, A. F, "The Human Side of Mergers and Acquisitions: Managing Collisions Between People, Cultures, and Organizations" (1989), San Francisco: Jossey-Bass Publishers
- Buono, A. F., "When cultures collide: The anatomy of a merger", Human Relations, 38(5), pp.477~500 (1985)
- Calori, R., "Control Mechanisms in Cross-border Acquisitions: an International Comparison", Organization Studies, 15(3), pp.361~379 (1994)
- Carey, D. C., "The Human Side of M&A: Leveraging the most important factor in Deal making" (2004), New York: Oxford University Express
- Cartwright, S., "The Impact of Mergers and Acquisitions on People at Work: Existing Research and Issues", British Journal of Management, 1, pp.65~76 (1990)
- Crutchfield, T. N., "Birds of a feather flock together: Strategic implications for advertising agencies", Journal of Advertising Research, pp.361~369 (2003)
- Daniel, T. A, "The Management of People in Mergers and Acquisitions" (2001), Westport. CT: Quorum
- Davies, C. J, "Mergers and acquisitions: The human factor", Dissertation Abstracts International Section A: Humanities & Social Sciences, 64(7), pp.2556~ (2004)
- Dong-A Daily, "English Stress", ~ (2005)
- Ducoffe, R, "Mergers & Acquisitions among advertising agencies. In: Media economics: Theory and practice" (1993), Hillsdale, NJ: Lawrence Erlbaum Associates, Inc
- Ducoffe, R, "Mergers and acquisition and the structure of the advertising agency industry", Journal of Current Issues and Research in Advertising, 16(1), pp.15~28 (1994)
- Euro week, "WPP group upgraded as ad agency M&A action goes on", ~ (2000)
- Fairfield-Sonn, J. W., "Mergers, Acquisitions and Long-Term Employee Attitudes", Journal of Business & Economic Studies, 8(2), pp.1~17 (2002)
- Fisher, E, "Advertising Agencies Await Word on Fate after Mergers", Washington Times, ~ (1998)
- Gutknecht, J. E., "Mergers, acquisitions and takeovers: maintaining morale of survivors and protecting employees", Academy of Management Executive, 7(3), pp.26~36 (1993)
- Ha, L., "Crossing Offline and Online Media: A comparison of Online Advertising on TV Web sites and Online Portals", Journal of Interactive Advertising, 3(2), pp.24~35 (2003)
- "An Empirical study on the liberalization effects of the Advertising industry"[URL]
- Hennink-Kaminski, H, "Transnational Advertising Agencies and The Niche Breadth Strategy: A Case for IMC at the Parent Company level", American Academy of Advertising Conference Proceedings, pp.131~ (2005)
- Heo, J, "Interview in English", Dong-A Daily, ~ (2004)
- Hong, S, "English=Survival", Dong-a Daily, ~ (2000)
- Jeong, J., "Exploring the missing point of view in international advertising management: local managers in global advertising agencies", International Journal of Advertising, 21, pp.293~321 (2002)
- Johnson, H. W., "The Success of Mergers: The case of Advertising Agencies", Bulletin of the Oxford University Institute of Economics & Statistics, 31(2), pp.139~152 (1969)
- 정재민, "Acquisitions or joint ventures: Foreign market entry strategy of US advertising agencies", JOURNAL OF MEDIA ECONOMICS, 17(1), pp.35~50 (2004), LAWRENCE ERLBAUM ASSOC INC
- "War with English" (2003)[URL]
- Kotter, J. P, "Corporate culture and performance" (1992), The Free Press, New York, NY
- Kubler-Ross, E, "On Death and Dying" (1969), New York: Macmillan
- Lee, J, "Shaking of Domestic Advertising Industry", AD Times, ~ (2004)
- Lee, Y, "Brand Solutions for an M&A World", Brandweek, 46(5), pp.16~17 (2005)
- Lin, C, "Developing a New Model for Selecting Advertising Agencies", International Journal of Management, 19(1), pp.132~144 (2002)
- Linnet, R., "WPP sits at the Top", Advertising Age, 71(21), pp.81~82 (2000)
- Lipponen, J., "Perceived procedural justice and employee responses to an organizational merger", European Journal of Work and Organizational Psychology, 13(3), pp.391~413 (2004)
- Marks. M.L, "Changing Back up the Hill: Workplace Recovery after Mergers, Acquisitions, and Downsizings" (2003), Jossey-Bass Publishing, San Francisco
- Marks, M. L, "Merger syndrome: Stress and uncertainty", Mergers Acquisitions, 20, pp.50~55 (1985)
- Marks, M. L, "The Merger syndrome", Psychology Today, 3, pp.36~42 (1986)
- Marks, M. L, "Making Mergers and Acquisitions Work: Strategic and Psychological Preparation", Academy of Management Executive, 15(2), pp.80~92 (2001)
- Martin, J, "The organizational culture war games: A struggle for intellectual dominance. In: Handbook of organization studies" (1996), London: Sage
- McMellon, C, "Personal interview" (1990), New York, NY: October
- Michell, P. C. N., "Establishing the causes of disaffection in agency-client relations", Journal of Advertising Research, pp.41~48 (1992)
- Mierzjewska, B. I, "Theoretical approaches in media management research. In: Handbook of Media Management and Economics" (2005), Lawrence Erlbaum Associates Inc, USA
- Cross Border Mergers & Acquisitions: Case Studies of Korea; China; and Hong Kong, China. Research Paper 2003, "Moon, H. C.", ~, pp.APEC (Asia-Pacific Economic Cooperation), #203-CT-01.6 (2003)
- Morrison, E., "When employees feel betrayed: A model of how psychological contract violation develops", Academy of Management Review, 22(1), pp.226~256 (1997)
- Na, W. B., "A cross-cultural assessment of the advertising agency selection process: an empirical test in Korea and New Zealand", International Journal of Advertising, 20, pp.49~66 (2001)
- Nachum, L., "The National Origin of the Ownership Advantage of Firms", The Service Industries Journal, 19(4), pp.17~48 (1999)
- Napier, N. K, "Mergers and Acquisitions, “Human Resource issues and Outcomes: A Review and suggested typology.”", Journal of Management Studies, 26(3), pp.271~289 (1989)
- Newman, J. M, "Changes in employee attitudes after an Acquisition", Group & Organization Management, 18(4), pp.390~410 (1993)
- Ott, J. S, "The organizational culture perspective" (1989), Chicago: Dorsey
- Peltier, S, "Mergers and Acquisitions in the Media Industries: Were Failures Really Unforeseeable", Journal of Media Economics, 17(4), pp.261~278 (2004)
- Schein, E. H, "Organizational culture and leadership: A dynamic view, 2nd edn" (1985), Jossey-Bass, San Francisco
- Schraeder, M, "Enhancing the success of mergers and acquisitions: an organizational culture perspective", Management Decision, 41(5), pp.511~522 (2003)
- Schweiger, D. M., "Communication with employees following a merger: a longitudinal field experiment", Academy of Management Journal, 34(1), pp.110~135 (1991)
- Schweiger, D. M., "Executive actions for managing human resources before and after acquisition", Academy of Management Executive, 1(2), pp.127~138 (1987)
- Sizing, M, "Average agency salary boosts fall", Advertising Age, ~ (1989)
- Tetenbaum, T. J, "Beating the Odds of Merger & Acquisition Failure: Seven Key Practices that Improve the Chance for Expected Integration and Synergies", Organizational Dynamics, 28(2), pp.22~36 (1999)
- Vinten, G, "Employee Relations in Mergers and Acquisitions", Journal of Economic Behavior & Organization, 22(2), pp.47~64 (1993)
- Wackman, D. B., "Developing an Advertising Agency-Client Relationship", Journal of Advertising Research, pp.21~28 (1987)
- Wentz, L, "The Knight who would be king", Advertising Age, 71(21), pp.81~83 (2000)