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Article
Publication date: 19 January 2021

Liang-Hung Lin and Yu-Ling Ho

This study concerns two aspects of the integration process critical for the success of acquisitions: (1) levels of human integration and task integration and (2) speeds of human

Abstract

Purpose

This study concerns two aspects of the integration process critical for the success of acquisitions: (1) levels of human integration and task integration and (2) speeds of human integration and task integration. The purpose of this study is to examine the interaction effects of human/task integration level and human integration speed advantage on acquisition performance.

Design/methodology/approach

This study collected data of companies in the Taiwanese high-tech industries at the financial, organizational and industrial levels to examine the proposed hypotheses. Corporate financial and patent data were collected from the Taiwan Securities and Futures Commission databases and the Intellectual Property Office (IPO) databases. The organizational level data were collected from 142 publicly traded related acquisitions from 2008 to 2009 in the Taiwanese high-tech industries.

Findings

The results show that (1) a high level of human integration positively affects technological performance; (2) the interaction term of human integration level and human integration speed advantage (i.e., relatively faster human integration coupled with slower task integration) positively affects technological performance; and (3) the interaction term of task integration level and human integration speed advantage positively affects technological performance.

Originality/value

The originality of this study lies in advancing our understanding of how complex interactions between human/task integration level and human integration speed advantage affect acquisition performance.

Details

Journal of Strategy and Management, vol. 14 no. 4
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 1 June 2001

Hongyi Sun

This paper records the research on human resources development associated with integrated manufacturing. The research is based on a survey in 18 countries. It is found that only…

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Abstract

This paper records the research on human resources development associated with integrated manufacturing. The research is based on a survey in 18 countries. It is found that only parts of the human resources factors are significantly related to the level of computerised integration. It is also found that the level of integration and the development of human resources vary from country to country. However, the difference in human resources development is bigger than the differences in the level of integration. The country context may be another source for explaining the development of human resources. Future research on revealing the forces driving human resources development is suggested.

Details

Integrated Manufacturing Systems, vol. 12 no. 3
Type: Research Article
ISSN: 0957-6061

Keywords

Article
Publication date: 12 October 2015

Anjali Bansal

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…

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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.

Details

Journal of Organizational Change Management, vol. 28 no. 6
Type: Research Article
ISSN: 0953-4814

Keywords

Book part
Publication date: 26 August 2014

Nicola Mirc

The contribution revisits existing research on human impacts on the performance of mergers and acquisitions. Findings are grouped into three categories: individual-…

Abstract

The contribution revisits existing research on human impacts on the performance of mergers and acquisitions. Findings are grouped into three categories: individual-, organizational- and managerial-related factors. Results show that while research seems various and abounding, influential factors are often studied as static setting approached in isolation, without measuring their direct relation to post-acquisition outcomes.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-78190-836-5

Keywords

Book part
Publication date: 15 June 2018

David R. King, Svante Schriber, Florian Bauer and Sina Amiri

Increasing chances of firm survival requires enduring entrepreneurship or the ability to balance competing demands for exploration and exploitation. We developed how acquisitions…

Abstract

Increasing chances of firm survival requires enduring entrepreneurship or the ability to balance competing demands for exploration and exploitation. We developed how acquisitions can provide needed disruption to change a firm’s dominant orientation toward exploration or exploitation or enable a continued focus on a firm’s dominant orientation. The result is a new typology for acquisition integration associated with different pre- and post-acquisition characteristics. For example, a firm with an exploitation orientation faces different integration challenges in acquiring targets with an exploration or exploitation orientation. We also distinguished between human and task integration to enable more nuanced integration decisions that help to reconcile conflicting findings on acquisition integration decisions. Implications for management research and practice were discussed.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-78756-136-6

Keywords

Book part
Publication date: 27 June 2017

Terrill L. Frantz

The PMI Risk Framework (PRF) is introduced as a guide to classifying and identifying risks which can be the source of post-merger integration (PMI) failure — commonly referred to…

Abstract

The PMI Risk Framework (PRF) is introduced as a guide to classifying and identifying risks which can be the source of post-merger integration (PMI) failure — commonly referred to as “culture clash.” To provide managers with actionably insight, PRF dissects PMI risk into specific relationship-oriented phenomena, critical to outcomes and which should be addressed during PMI. This framework is a conceptual and theory-grounded integration of numerous perspectives, such as organizational psychology, group dynamics, social networks, transformational change, and nonlinear dynamics. These concepts are unified and can be acted upon by integration managers. Literary resources for further exploration into the underlying aspects of the framework are provided. The PRF places emphasis on critical facets of PMI, particularly those which are relational in nature, pose an exceptionally high degree of risk, and are recurrent sources of PMI failure. The chapter delves into relationship-oriented points of failure that managers face when overseeing PMI by introducing a relationship-based, PMI risk framework. Managers are often not fully cognizant of these risks, thus fail to manage them judiciously. These risks do not naturally abide by common scholarly classifications and cross disciplinary boundaries; they do not go unrecognized by scholars, but until the introduction of PRF the risks have not been assimilated into a unifying framework. This chapter presents a model of PMI risk by differentiating and specifying numerous types of underlying human-relationship-oriented risks, rather than considering PMI cultural conflict as a monolithic construct.

Article
Publication date: 1 April 2000

Pawan S. Budhwar

Evaluates the levels of strategic “integration” of human resource management (HRM) into the corporate strategy and “devolvement” of responsibility for HRM to line managers in the…

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Abstract

Evaluates the levels of strategic “integration” of human resource management (HRM) into the corporate strategy and “devolvement” of responsibility for HRM to line managers in the UK manufacturing sector. Summarises, initially, some of the primary theoretical debates existing in the HRM literature and then presents empirical results of a large‐scale study. Bases the findings on a questionnaire survey and in‐depth interviews. Not only highlights the present scenario regarding the concepts of integration and devolvement from the “subject‐matter experts”’ viewpoint, but also reveals the main logic surrounding them and the main factors and variables which determine these two practices in the UK. Contributes to the field of strategic HRM and opens avenues for further research.

Details

Personnel Review, vol. 29 no. 2
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 10 January 2019

José-Luis Rodríguez-Sánchez, Marta Ortiz-de-Urbina-Criado and Eva-María Mora-Valentín

The purpose of this paper is to propose a human resource management model for the integration stage of mergers and acquisitions (M/A) process with four key factors: leadership and…

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Abstract

Purpose

The purpose of this paper is to propose a human resource management model for the integration stage of mergers and acquisitions (M/A) process with four key factors: leadership and integration team; change and restructuring process; human resources (HR) resistance; valuable HR retention.

Design/methodology/approach

The authors analyze a case study of a multinational company that operates in the mechanical engineering sector.

Findings

The results show the special importance of human resource management in the success of the merger and acquisition process. And, the main actions implemented in HR contributing to the success of this process are identified.

Research limitations/implications

Subsequent investigations could conduct similar analyses for the planning and implementation stages of the merger and acquisition process, with the objective of presenting a complete HR management model in merger and acquisition processes.

Practical implications

The case study allows researchers to learn from professionals and business leaders while also offering a theoretical model that can help managers make decisions and improve the management of these processes.

Originality/value

The main contribution of this study has been to observe how HR are managed in the integration stage of M/A.

Details

International Journal of Manpower, vol. 40 no. 4
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 11 December 2019

Anjali Bansal

Achieving a highly satisfied and committed workforce, during post-merger integration (PMI), has made employees’ perceived organizational justice a vital construct in the mergers…

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Abstract

Purpose

Achieving a highly satisfied and committed workforce, during post-merger integration (PMI), has made employees’ perceived organizational justice a vital construct in the mergers and acquisitions (M&A) research. For example, employee attitudes like satisfaction and commitment influence overall M&A outcomes, but employee responses primarily depend on their perceptions of justice for the merged organization. Hence, the purpose of this paper is to investigate the cause and effect of employees’ perceptions of justice during M&A.

Design/methodology/approach

This research used a mixed-methods research design (qual and quan). The quantitative investigation of 207 M&A survivors from 3 M&A deals examined the relationship between perceived organizational justice (three dimensions) with employees’ level of affective commitment and satisfaction during PMI. The multivariate analysis was performed to analyze this data. A thorough thematic content analysis of the in-depth interviews of ten M&A experts and strategists helped to develop a detailed theoretical model of justice during M&A.

Findings

The resultant model highlighted the three antecedents of perceptions of justice, i.e. human integration, cultural integration and task integration, which together explained the employees’ perception of justice during M&A. Perception of justice was further found to influence employees’ psychological outcomes and overall synergy realization.

Originality/value

The current study adds to the literature by providing a holistic understanding of the justice phenomenon during M&A by focusing on its antecedents and outcomes, and thus, proposes a detailed framework. The current study also emphasizes on the relative importance of procedural and interactional justice over distributive justice in determining employee attitudes toward change.

Details

International Journal of Manpower, vol. 41 no. 4
Type: Research Article
ISSN: 0143-7720

Keywords

Book part
Publication date: 27 June 2017

Ralph McKinney, Lawrence Shao, Dale Shao and Marjorie McInerney

The success of mergers and acquisitions are contingent upon organizational operations, legal structures, and fiscal responsibilities. Each of these areas requires a proper mix of…

Abstract

The success of mergers and acquisitions are contingent upon organizational operations, legal structures, and fiscal responsibilities. Each of these areas requires a proper mix of human capital – people – assigned to carry out the objectives and goals of the emerging entity. Within the general knowledge of Mergers and acquisitions (M&As), research focusing upon these aspects of human capital have been lacking. This chapter adds to the current knowledge of M&A human resources by establishing a framework that can direct future research.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-78714-693-8

Keywords

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