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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.

Post-merger integration (PMI) is driven by coevolving processes. By integrating the literature on acquisitions with that of knowledge networks, this paper highlights different reconstruction mechanisms for dual knowledge networks during PMI – namely, internal knowledge network coupling and external knowledge network embeddedness. This paper aims to examine their coevolutionary relationships with PMI.

A coevolutionary framework is tested using a latent growth model and cross-lagged models. The analysis is based on longitudinal data collected from 116 Chinese technology-sourcing overseas merger and acquisition firms.

This paper unearths a novel idea that variations in post-merger reconstruction of dual knowledge networks can explain why some acquirers increase the degree of integration faster than the others. The results show that the internal knowledge network coupling leads to more knowledge similarity and, in turn, causes a higher degree of integration. The external knowledge network embeddedness also causes higher relative network status of the acquirer, which consequently leads to a higher degree of integration. Furthermore, results from cross-lagged models confirm that an increase in the degree of integration positively influences subsequent changes in the internal knowledge network coupling and external knowledge network embeddedness, thus forming a coevolutionary relationship over time.

This paper responds to recent calls for more insights into the dynamics of PMI. By highlighting different reconstruction mechanisms for internal and external knowledge networks during PMI, this paper explains why it is important to understand PMI dynamics from a dual knowledge network perspective. This paper is the first to adopt a coevolutionary perspective and provide a more comprehensive dynamic framework between PMI and reconstruction of dual knowledge networks. Besides, this paper contributes to the research on emerging market multinational corporations’ cross-border merger and acquisition integration from a dynamic perspective, revealing the time effects of traditionally favored light-touch integration.

The purpose of this paper is to analyse change processes in the post‐merger integration (PMI) phase from a complexity theory perspective. Therefore, it looks at the merged organisation as a complex adaptive system (CAS).

Post‐merger situations borrowed from literature and a one‐day expert workshop with integration managers are related to the characteristics of CASs. During the workshop, data of the change process in different PMI phases are collected and the integration activities are analysed with a coded event history analysis.

Change processes in the PMI phase are very complex and the newly merged organisations experience tension and non‐linear behaviour, but positive self‐organisation, a major property of CASs, cannot always emerge as the required prerequisites are sometimes not given.

Insights of the workshop are limited to personal statements of the participants. In order to further investigate the PMI process under a complexity perspective, additional research in the form of longitudinal case studies including methods of storytelling and narratives should be considered.

Leaders and integration managers need a great repertoire of behaviours in order to both manage the challenging change processes by planning and controlling the integration activities and allow self‐organisation to emerge.

The paper offers a deeper understanding of the complex change processes in the PMI phase by using the metaphor of complexity theory and CASs.

Post-merger integration (PMI) has received much attention in recent years due to an increasing number of merger and acquisitions (M&As). Process harmonization plays an important role during the PMI. The purpose of this paper is to find out if there is any methodology available for process harmonization in the PMI phase. From a PMI/M&A perspective, business process management (BPM)/quality management perspective and change management perspective, the existing literature is analyzed.

A structured literature review covering a wide field of publications in the interface of BPM, quality management and PMI-related publications is used to identify process harmonization methodologies after M&A and disclosing interrogations for future research.

There is hardly any connection found between PMI and business process harmonization in literature. While information technology/systems integration in PMI is researched in various publications, a special methodology or integration approach tailored for business processes and management systems is not available despite numerous literatures on PMI, BPM, quality management and change management. Nonetheless, these articles contain relevant recommendations as a part of the big picture. So here lies the optimal starting point for future research.

Although this literature review has regarded publications of numerous databases, limitations might follow the selective citation due to thousands of articles in the field of M&A, PMI, BPM and quality management. Further, process harmonization and standardization have been regarded in largely as synonyms.

To the best of the authors’ knowledge, no systematic literature review in this interface has been previously published.

Trade uncertainty does influence the firm’s new investment, profitability and supply chain finance. Consequently, it results in decreased consumption and low consumer confidence and eventually disrupts global economic activity. This paper aims to propose a model to uncover the effects of trade policy uncertainty (TPU) on the real economic activity and economy’s health measured in terms of the purchasing manager’s index (PMI).

This study uses the PMI, trade policy uncertainty index, economic policy uncertainty index and short-term interest rate. The relation between economic activity and uncertainty was studied using nested regression and vector autoregressive model.

The empirical results show that PMI of China and Japan were more responsive to the TPU of the USA and remained more fluctuating during the year 2018–2019. Importantly, this paper notices that the US’s PMI reached a low historically subject to its own trade policy and tension with China. Overall, TPU has shown more pronounced effects on PMI across China, Japan and the USA, followed by important economic and political events and major trade tariff uncertainty deals.

The empirical outcome holds some practical implications trade uncertainty affects not only the economic health of the economy but also market participants, global investors and international political environment, recent trade barriers, tariff wars and ambiguity raise question about free and fair global trade and competitiveness of the member country of the world trade organization.

The work is a novel that attempts to explain economic activity and supply chain through PMI. Unlike conventional economic indicators, e.g. gross domestic product, producer price index, consumer price index, employment, etc. PMI measures manufacturing industries’ overall status concerning the number of orders, inventory levels, productions, supplier deliveries and employment.

This paper seeks to investigate the determinants of private medical insurance (PMI) consumption in the UK.

A unique combination of panel data estimators, reduced from equations and instrumental variables, applied to six waves of the British Household Panel Survey, 1996‐2002.

Results from previous studies are compromised by their failure to use appropriate estimation techniques. Furthermore, a clear distinction between being covered by PMI, having purchased PMI; and having an employer provide PMI is important.

Controlling for endogenous variables, such as income and the use of panel data estimators, should be a necessary research method in this area.

This study provides a robust analysis of the determinants of PMI consumption in the UK, enabling product providers to identify and target potential customers in different segments of the PMI market.

This paper breaks new ground in concluding with confidence that age, experience of the NHS in the past years and the belief that the NHS is poor quality, are positive influences on PMI uptake

This paper aims to identify the role of language in international business context, especially in a post-merger integration (PMI) process, and to develop a framework for language strategies in a PMI context.

Based on the authors’ review and building on earlier works, this paper develops a conceptual model regarding the use of language in different PMI scenarios and identifies the key resource mix that may be suited for an effective deployment of language strategies.

The authors find that the use of a language at target firms depends on the degrees of strategic interdependence and organizational autonomy. They classify different constellations of targets in a PMI context and propose the most appropriate language strategies for different classification of PMI firms.

The authors develop five testable future research propositions based on our conceptual model. The paper is not without its limitations. The authors’ propositions need to be tested in future studies. It may be sometimes difficult to collect data based on all the four segments of firms using a quantitative design. It is also challenging to investigate about the language used at the target firms using quantitative designs.

The authors’ model has several practical implications for the managers. Bidder firm’s managers can decide the use of appropriate language depending on their acquisition strategy. It is very likely that target managers have to change the language following the acquisition, and because of this change, influence on their routines will be significant. This issue becomes most important if both firms do not speak the common corporate language – English language. The authors bring ideas for a best fit, which are applicable not just for merger and acquisition but also for other strategic sourcing areas such as outsourcing strategies.

There are several negative emotions that are invoked through language. Language is also power laden and affects social structure and group dynamics at work. By addressing the use of appropriate language strategies, people can potentially avoid the dark side of language.

The authors present testable propositions for future research in a PMI context.

Mergers and acquisitions (M&As) are major corporate changes and are among the most stressful for employees. Employee resistance is a well-recognised reason for high failure rates of post-merger integration (PMI). The contemporary concept of psychological capital (PsyCap) is a promising approach for dealing with the issue. To date, relatively little research has been conducted on the relationship between PsyCap and resistance. The purpose of this paper is to examine the possible positive impacts of PsyCap on employee resistance during PMI, based on a review of the existing literature and selected interviewers with a panel of experts, and offer a theoretical model for decreasing the resistance.

This paper builds on the literature on M&A, PMI, and employee resistance by focusing on the contribution of PsyCap. Apart from formulating propositions and answering pre-determined research questions, the findings are the basis for a theoretical model that was validated by a panel of experts.

This research documents the negative emotions that are triggers for resistance during PMI under the influence of PsyCap. By measuring and assessing the PsyCap needs of employees, resistant employees were revealed, and their PsyCap was developed using tailored interventions. The research findings indicate this to be a feasible approach for reducing resistance during PMI.

All of the findings rely on empirical testing and operationalisation. Cultural differences may influence the PsyCap dimensions.

M&A deals often fail due to unsuccessful PMI implementation because leaders fail to consider the psychological impacts when trying to overcome resistance. The model proposes a possible solution.

The offered theoretical approach is original and provides new insights for researchers and practitioners who evaluate M&A strategies.

The purpose of this paper is to provide a historical perspective and going-forward assessment of the importance of private mortgage insurance (PMI) entities in the residential-lending landscape in the USA.

Financial data from the PMI entities and federal income tax data were analyzed to comment on the importance of the PMI entities in the historical and current mortgage-lending environment.

PMI entities played a critical role in expanding the population of mortgage candidates for financial institutions. Through the guarantees offered by PMI entities, financial institutions granted loans to individuals who otherwise would not have qualified for mortgages.

No prior research has assessed the overall historical role played by these primary PMI entities.