The purpose of this paper is to examine factors influencing employee
reactions to changes brought about by crossborder acquisitions. The research
was conducted in a company operating in Serbia?s retail sector that was
acquired by a Belgian multinational company. The data were collected from
344 respondents. Measures of central tendency, the Mann-Whitney U test, and
regression analysis were used to test the research hypotheses. The research
results show that employee reactions to changes brought by cross-border
acquisition were generally positive. The study show that corporate cultural
differences between the acquiring company and the acquired company and the
support of transformational leaders resulted in employees reacting
positively to the changes. The study attempts to improve understanding of
employee reactions during the process of change occurring as a result of
cross-border acquisition. Additionally, this study has practical
implications, as it points to how the appropriate management of human
resources contributes to positive employee reactions.