Post-acquisition integration process: use a stick or a carrot? A sensemaking-sensegiving perspective

In this exploratory study we argue that achieving an effective employee mindset toward acquisition may be less a process of limiting acquisitions to firms with more similar cultures than it is an ability to manage cultural differences through cultural learning. This study is the first to systematically and empirically examine cultural learning interventions as they apply to the post-acquisition integration process. The longitudinal results from a field experiment across three pairs of matched plants indicate that cultural distance between employees from combining firms can be bridged during the early stages of the integration process. Deep-level cultural learning interventions were found to develop constructive employee perceptions and attitudes that are believed to enhance performance in acquisitions requiring human integration to achieve synergies.

Download Full-text

The Integration Journey: An Attention-Based View of the Merger and Acquisition Integration Process

Organization Studies ◽

10.1177/0170840605057071 ◽

2005 ◽

Vol 26 (10) ◽

pp. 1501-1528 ◽

Cited By ~ 95

Author(s):

Jisun Yu ◽

Rhonda M. Engleman ◽

Andrew H. Van de Ven

Keyword(s):

Healthcare System ◽

Merger And Acquisition ◽

Ethnographic Study ◽

Vicious Cycle ◽

Integration Process ◽

Senior Managers ◽

Acquisition Integration ◽

Post Merger Integration ◽

Merger Integration

This paper reports findings from an eight-year ethnographic study of the integration process in a large healthcare system formed in a 1994 merger. We examine the post-merger integration process by analyzing the relative amounts of time that senior managers in one unit of this organization spent discussing various integration topics and issues in their bi-weekly meetings from 1995 to 2002. We also describe the different patterns observed when managers addressed topics in their meetings related to internal unit integration versus integration with other parts of the organization. Finally, we identify a vicious cycle of repeated conflicts in how organizational members made sense of issues that emerged during the post-merger integration journey.

Download Full-text

Merger and Acquisition Integration Model: A Practical Approach

JURNAL BISNIS STRATEGI ◽

10.14710/jbs.30.1.35-46 ◽

2021 ◽

Vol 30 (1) ◽

pp. 35-46

Author(s):

Suwinto Johan

Keyword(s):

Financial Services ◽

Service Industry ◽

Descriptive Analysis ◽

Merger And Acquisition ◽

Integration Process ◽

Financial Industry ◽

Integration Model ◽

Acquisition Integration ◽

Business Practitioners ◽

Merger Integration

This research aims to guide the merger and acquisition process for business practitioners in Asia. The research uses qualitative, descriptive analysis, and inductive approaches. This research is based on the samples of 20 transactions that have been performed in the last 25 years. The transactions involve companies from Indonesia, Malaysia, United States, United Kingdom, Japan, and Canada. The study proposes a merger and acquisition model with seven steps: determining the strategy, searching for the target, reviewing the target, confirmation and negotiation, transaction, and integrating into a business. The result of this study contributes to a new model of merger acquisition integration. The model will show the integration process in the financial services industry in South East Asia. The results support previous studies. The acquisition and integration model will assist the company's management in South East Asian countries to manage the merger integration process, especially in the financial industry. This research provides an integration model according to transactions in Asia in the financial service industry.

Download Full-text