Understanding the integration mechanisms practiced during organizational change: Evidence from five M & A transactions

Abstract

Purpose

The purpose of this paper is to report a study of post-integration mechanisms carried out by five multinational mergers and acquisitions (M & A) transactions taken place in Indian context. This study has been woven around the concept of human integration and task integration as separate objectives of acquiring organizations to be achieved.

Design/methodology/approach

This study is based on descriptive research design. Qualitative data were collected, where the managers from the acquiring organizations and employees from the acquired firms have taken part in the data collection process through interviews. Interview schedule was developed for managers consisting questions on organizations’ strategy to achieve success post-M & A integration (PMI), while interview schedule developed for employees investigated their reactions after organizational change.

Findings

Results revealed that the organizations where human integration mechanisms were given due credence also harbored highly committed employees from their organizational counterparts, whereas the transactions where task integration objective was given preference while ignoring human integration, employees developed the negative emotions of anger and insecurity for their newly merged firm.

Research limitations/implications

The M & A literature observes a huge gap in the field of M & As in India, especially in PMI mechanisms worldwide, as the emphasis has always been on financial and operational aspects of M & As. Thus, this study addresses this gap in research and opens the avenues for M & A researchers to consider HR as the strategic partner during M & As.

Practical implications

The study has important implications for MNCs operating in India and for those which want to excel the Indian market through M & A.

Originality/value

This paper is based on the original field work and every information given is authentic.

Citation

Bansal, A. (2015), "Understanding the integration mechanisms practiced during organizational change: Evidence from five M & A transactions", Journal of Organizational Change Management, Vol. 28 No. 6, pp. 929-947. https://doi.org/10.1108/JOCM-12-2014-0222