Search results

1 – 10 of 61
To view the access options for this content please click here
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…

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.

To view the access options for this content please click here
Article
Publication date: 3 April 2018

Irene Maria Schönreiter

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Originality/value

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

Details

Business Process Management Journal, vol. 24 no. 2
Type: Research Article
ISSN: 1463-7154

Keywords

To view the access options for this content please click here
Article
Publication date: 30 June 2020

Eva Schlindwein and Mike Geppert

The purpose of this paper is to advance micro-level theorising of sociocultural post-merger integration (PMI) by merging insights from international business and…

Abstract

Purpose

The purpose of this paper is to advance micro-level theorising of sociocultural post-merger integration (PMI) by merging insights from international business and management research on the cognitive and affective dimensions of PMI.

Design/methodology/approach

The paper follows a narrative approach to review the previously separate literatures on cognition and emotion in PMI situations. It draws on insights from management research beyond the PMI context to integrate these literatures and as a result, develops a process model of emotional sensemaking in PMI.

Findings

An emotional sensemaking approach to PMI helps to explain when and why events might or might not motivate individuals to revisit their interpretation of a PMI and illustrates how and why similar PMI events can lead to opposite individual reactions and, thus, obtain heterogeneous integration outcomes.

Research limitations/implications

The paper discusses how an emotional sensemaking approach can be applied to sociocultural PMI and points to new directions for future studies based on this application. As the model concentrates on the individual level, theoretical implications for sociocultural PMI at the meso- and macro-levels remain limited.

Originality/value

This paper brings forward the dynamics that underlie the processes and outcomes of individuals’ behaviour and reactions to PMI events. The proposed process model of emotional sensemaking in PMI responds to recent calls by sociocultural PMI scholars to promote a processual rather than event-based view of PMI, with a focus on individual actors and an emphasis on the multifaceted dynamics and outcomes of PMI.

Details

critical perspectives on international business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1742-2043

Keywords

To view the access options for this content please click here
Article
Publication date: 12 January 2010

Bärbel Lauser

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…

Abstract

Purpose

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).

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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

Details

Baltic Journal of Management, vol. 5 no. 1
Type: Research Article
ISSN: 1746-5265

Keywords

To view the access options for this content please click here
Book part
Publication date: 14 July 2015

Terrill L. Frantz

Cultures don’t clash … people do. Hidden below the veil of “incompatible cultures” is a complex network of human-to-human interaction involving information-exchange…

Abstract

Cultures don’t clash … people do. Hidden below the veil of “incompatible cultures” is a complex network of human-to-human interaction involving information-exchange transactions that have gone awry. The multitude of these troubled exchanges results in what is often branded as “M&A failure, due to culture conflict.”

This chapter presents a theoretical discussion that features practical dynamics of the post-merger integration (PMI) process. The aim is to cultivate a deeper understanding of critical, less-acknowledged micro-level aspects of the post-merger integration stage, specifically, those which underlie the development and maintenance of an organization’s culture and lead to organization performance. It is the unseen information exchange among human actors that leads to the perceptible post-merger outcomes, such as cultural unity and task performance. The quality of these micro-exchanges leads to the value capture from the M&A transaction, thus determining the success – or not – of the combination.

Presented is a synthesis of numerous existing theories, perspectives, and ideas from various scholarly communities, combined with a drill-down to the basic human interactions that define a culture and lead to positive performance. Information flow is the sustenance of an organization, so when merging organizations restructure the information flow is abruptly disrupted, often at pronounced near-term cost. The information-flow channels must be mended for social unification and performance value goals of the combined organization to be realized. The information-transporting social networks of the organizational actors must therefore adapt and intermingle across the old-organizational faultlines. This is accomplished when individual actors alter their personal social networks and retool themselves for a new set of information-exchange interactions.

In closing, the author counsels managers to focus on the dyadic information exchange of their direct-reports as an actionable approach to PMI management. The chapter concludes by pointing researchers toward studying the micro-level aspects of PMI and offers computer modeling and simulation, and laboratory experiments as effective ways to study PMI dynamics at the micro-level of organization behavior. Such methods may also lead to an ability to forecast outcomes of specific post-merger integration scenarios.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-78560-090-6

Keywords

To view the access options for this content please click here
Article
Publication date: 17 May 2018

Ashish Malik and Ralf Bebenroth

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Social implications

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.

Originality/value

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

Details

Journal of Global Operations and Strategic Sourcing, vol. 11 no. 2
Type: Research Article
ISSN: 2398-5364

Keywords

To view the access options for this content please click here
Book part
Publication date: 30 May 2013

Christina Öberg and Shlomo Yedidia Tarba

This chapter presents a review of the state of the art on the topic of knowledge transfer following post-merger integration (PMI) in international mergers and acquisitions…

Abstract

This chapter presents a review of the state of the art on the topic of knowledge transfer following post-merger integration (PMI) in international mergers and acquisitions (M&A) and identifies points of agreement and disagreement, recognizes underexplored areas and provides suggestions on how they could be explored in future studies. The chapter points to the limited amount of literature that describes knowledge transfer following international acquisitions, while highlighting it as an emerging field of research. The knowledge transfer literature mainly refers to innovation and innovation capabilities, while areas such as marketing and customer knowledge are vitally absent in the literature. In any international acquisition, such knowledge transfer would be of fundamental importance, given the acquisition motive to reach new markets or customers. Two case studies on the transfer of knowledge about customers following international acquisitions are provided. The case illustrations point to a focus on knowledge transfer on strategic levels in the post-merger integration following international acquisitions, while the operational sales forces’ transfer of knowledge is largely disregarded in practice. Since much of the tacit knowledge about customers is handled on that level, it needs to be recognized and developed. The chapter indicates that raising the awareness of the transfer of knowledge about customers following international acquisitions is important from a practitioner’s as well as a research point of view.

Details

Philosophy of Science and Meta-Knowledge in International Business and Management
Type: Book
ISBN: 978-1-78190-713-9

To view the access options for this content please click here
Article
Publication date: 15 January 2020

Yao Ma and Jiahua Xu

The purpose of this paper is to hone in on the degree of segment-level integration relative to corporate post-merger performance.

Abstract

Purpose

The purpose of this paper is to hone in on the degree of segment-level integration relative to corporate post-merger performance.

Design/methodology/approach

The sample consists of 89 segments in 29 combined companies resulting from large mergers and acquisitions (M&A) transactions between 2001 and 2014 in the pharmaceutical and chemical industries worldwide. The authors track the change through M&A in performance of segments with different integration forms as well as performance of entire companies with different integration levels.

Findings

The authors find that integrating the segments from the target significantly improves the acquirer’s overall performance, as well as the concerned segments’ performance, following an M&A transaction. Whereas the segments from the target company, when left unintegrated, not only exhibit subpar performance among all the segments, but also appear responsible for the worsening corporate performance. Various possible reasons for this contrast are discussed.

Originality/value

This paper raises awareness of the significance of segment-level analyses, and contributes to the post-merger integration (PMI) research by examining the influence of structural integration on operating segments. To the best of our knowledge, this paper is the first to investigate integration forms and the post-merger financial performance of various segments within companies.

Details

Journal of Organizational Change Management, vol. 33 no. 1
Type: Research Article
ISSN: 0953-4814

Keywords

To view the access options for this content please click here
Article
Publication date: 2 October 2017

Jennifer Linda Dorling

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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

Practical implications

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.

Originality/value

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

Details

Journal of Organizational Change Management, vol. 30 no. 6
Type: Research Article
ISSN: 0953-4814

Keywords

To view the access options for this content please click here
Article
Publication date: 11 March 2019

Anne-Sophie Thelisson, Audrey Missonier, Gilles Guieu and Lotte S. Luscher

This paper aims to examine post-merger integration (PMI) through the lens of paradox to determine how paradoxes contribute to successful integration. Although PMI has been…

Abstract

Purpose

This paper aims to examine post-merger integration (PMI) through the lens of paradox to determine how paradoxes contribute to successful integration. Although PMI has been identified as crucial to understand merger success or failure, the literature on PMI drivers remains inconclusive.

Design/methodology/approach

Drawing on the theory of paradox and two key elements of PMI, strategic interdependency (SI) and organizational autonomy (OA), the authors describe the merger of two listed French companies using longitudinal data.

Findings

The authors identify how the paradox between OA and SI was triggered and fostered PMI success by leading to symbiotic integration. They also show that two capabilities were central in helping the paradox to evolve: preserving the specificities of the organizations and pooling their respective capabilities. These capabilities result from basic decisions and actions during the integration implementation, such as highlighting the expertise of the target firm, refocusing the core activity while valorizing each company’s expertise, clarifying the identity of the new organization on the market and enhancing joint piloting and transferring both general management capacity and functional abilities during the reorganization period.

Practical implications

The authors offer several useful insights for managers trying to manage paradoxical tension throughout the merger process. This study encourages managers to embrace inconsistencies as they make decisions and to shift to dynamic decision-making as a way to adapt to complex contexts.

Originality/value

This study adopts a global and inclusive approach to focus on OA and SI and flesh out a picture of the integration process. It proposes a dynamic process model to conceptualize the stage-wise nature of the PMI process by highlighting the interrelations between OA and SI dynamics.

Details

European Business Review, vol. 31 no. 2
Type: Research Article
ISSN: 0955-534X

Keywords

1 – 10 of 61