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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Stakeholder’s Perception on Quality of Mergers and Acquisitions in Tanzania

Burhan Ahmad Mtengwa, Janeth A. Malleo

http://dx.doi.org/10.6007/IJARBSS/v8-i10/4832

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In the light of Mergers and Acquisitions movement, the purpose of this paper is to evaluate stakeholders’ perception on the quality of mergers and acquisitions service sectors. It also seeks to measure the level of satisfaction among stakeholders towards mergers and acquisitions.
This paper employ SERVQUAL model to measure and evaluate stakeholders’ expectation and perceptions on mergers and acquisition service sectors. Data were collected from a sample of 100 stakeholders from various merged and acquired banking, hotel and telecommunications companies in Dar-es-salaam, Tanzania by using questionnaires.
The findings reveal that all dimensions of mergers and acquisition service sector were not satisfactory to stakeholders. Gap score analysis indicated a negative values on all four dimensions namely job creation, market monopoly, customer satisfaction and shareholders position (employees feeling of betray by their employer, less job creations, a shift of stakeholder’s bargaining power and less customers satisfaction) meaning that all dimensions needed improvements. Employment and shareholders’ positions ranked high in importance weight analysis which also indicated that job creation and distribution of shares was not considerate.
The paper suggests involvements of stakeholders in the process and increase more job opportunities, shares and flexibility of market monopoly so as to improve mergers and acquisitions in Tanzania service sectors.
Practical Implications: The data provide evidences of less customers satisfaction on mergers and Acquisitions in service sectors in Tanzania. The findings have implications on companies which undergo mergers and acquisition to consider stakeholders concerns.

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In-Text Citation: (Mtengwa & Malleo, 2018)
To Cite this Article: Mtengwa, B. A., & Malleo, J. A. (2018). Stakeholder’s Perception on Quality of Mergers and Acquisitions in Tanzania. International Journal of Academic Research in Business and Social Sciences, 8(10), 1108–1124.