National feelings or rational dealings? The role of procedural priming on the perceptions of cross-border acquisitions
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AbstractCross-border transactions are often perceived by the general public as national threats instead of rational business deals. We propose two interpretational mindsets that attenuate (transactional mindset) and agitate (categorization mindset) these culturally motivated responses. Three studies were conducted in Singapore and the United States with various cross-border acquisition scenarios. As predicted, transactional mindset, which centers around cost-benefit calculations, nudged participants to evaluate the foreign acquisition more rationally and evoked fewer social-cultural considerations than categorization mindset, which focuses on categorizing and comparison procedures, and when no mindset was primed. Furthermore, the effects of categorization mindset are particularly strong when one perceives the two transacting parties as dissimilar and when he/she identifies closely with the local culture. We conclude that while economic activities such as cross-border acquisitions can inadvertently evoke nationalistic reactions, it is possible to mitigate them or even encourage rational evaluations by influencing people's interpretational mindset. © 2011 The Society for the Psychological Study of Social Issues.
All Author(s) ListTong Y.-Y., Pun-Zee Hui P., Kwan L., Peng S.
Journal nameJournal of Social Issues
Year2011
Month12
Day1
Volume Number67
Issue Number4
PublisherBlackwell Publishing Inc.
Place of PublicationUnited Kingdom
Pages743 - 759
ISSN0022-4537
LanguagesEnglish-United Kingdom

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