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When talking about mergers and acquisitions (M&As), few announcements clearly define if the operation will deal with a merger (where firms have an equal-to-equal relation) or acquisition (when one firm is in control of the operation and decides the integration process). Operations are commonly labeled M&A. Nevertheless, mergers remain rare, and the authors see that most of the time, operations designed and integrated with firms as equals end in the control of one of the entities over the other.

The authors investigate how two CEOs and their managers communicate during the due diligence period of a merger. The author describes the project merger of two French companies using longitudinal data.

This in-depth case study provides new insights into the due diligence period and the differences between M&As. The findings highlight how the decision to add an associate from a rival firm to the board ended the merger project as the situation evolved toward an acquisition in CEOs’ minds.

The limitations are those concerning a single case study.

The paper highlights the complexity of merger negotiations and the unexpected events faced by stakeholders. The analysis, thus, contributes to an inclusive and integrative view of the challenges in the due diligence process, whereas first defining the operation as a merger or an acquisition is a first step in identifying the degree to which autonomy and interdependence will be given across firms, and how some strategic decisions will be implemented. This case study highlights two specific items that can be understood by managers as key elements in deal success: defining operations as a merger or an acquisition help internal and external stakeholders in planning the operation; leaving space for adjustment among partners engaged in negotiations during the due diligence period is also useful.

Despite their frequency, merger and acquisition failures remain surprisingly high. This paper explores how stakeholders deal with merger negotiations.

The case provides insights into the due diligence period and the way minor events can impact the planned integration. Theoretical concepts and empirical findings from the literature are combined to present a single consistent picture. To the best of the authors’ knowledge, few studies address insights on strategic decisions made as the negotiation period remains a secret and sensitive stage, especially for a failed deal, but we were able to delve beneath the surface.

One of major concerns of serial acquirers is to ensure value creation. However, mergers and acquisitions (M&As) are well known for the key management problems they generate such as change management, cultural clashes and increased managerial turnover. Despite this, M&As also offer opportunities for integrating best practices. This paper aims to demonstrate how Danaher attempts to cultivate employee engagement in companies it has recently acquired.

This paper adopts a single-case approach to show how Danaher implements its in-house method – the Danaher Business System – a management system during the take over and the postacquisition phase.

The findings from this paper demonstrate best practice management and strategies needed to ensure successful M&As. Almost 40 years after serial acquisitions, Danaher is cited as one of the most successful serial acquirers. Its human approach to takeovers has been a central part of this.

This paper offers a concise and clear outline of the management strategies used by Danaher to ensure successful acquisitions relying on Kaizen and LEAN with a strong focus on the human side. During the takeover and postacquisition integration, Danaher’s human approach would appear to be a key differentiating element.

This study aims to analyze and discuss whether and how consumer-to-manufacturer (C2M) mode empowered by e-commerce retail platforms’ big data affects the stock returns of firms in supply chains.

This study selects 195 companies affected by four C2M events as samples and empirically analyzes the impact mechanisms of C2M mode on supply chain firms’ stock returns by event study.

This paper finds that C2M announcements own a positive impact on the stock returns of supply chain firms. Further, the results show that the business and financial characteristics play a significant impact on the relationship between the C2M mode and firm stock return performance. For example, C2M mode leads to huge stock returns when firms cooperate with the platforms related to their business content. In addition, the business scope can strengthen the positive promotion of C2M mode in stock returns, while business concentration weakens the positive promotion of C2M mode in stock returns.

The results found in this paper can provide practical guidance for the firms in supply chains to further apply C2M mode from the business characteristics and financial performance view.

This study aims to analyze the development of digital market characteristics particularly focusing on how the strategic choices of platforms are not fully reflected in pricing. In addition, the implications for the development of theories of harm are investigated to explore the necessity of a relevant market definition in assessing infringement and evaluating the adequacy of Indonesian competition law.

This study is a legal analysis that uses statutory approaches, cases, comparative law and the development of theories of harm in digital mergers. The case approach is conducted by analyzing three cases decided by the Indonesia Business Competition Supervisory Commission. This approach provides insight into the response of Komisi Pengawas Persaingan Usaha concerning the merger and acquisition cases in the digital era as well as the provision of different analyses in conventional markets. However, competition can be potentially damaged in digital markets and a comparative law approach is taken by analyzing digital merger cases decided by authorities in other countries.

Results reveal that the digital market has created a “relevant market” that is challenging and blurred due to multi-sided network effects and consumer data usage characteristics. Platform-based enterprises’ prices fluctuate due to the digital market’s network effect and consumer data statistics. Smartphone prices depend on the number of apps and consumer data. Neoclassical theory focusing on product markets and location applied in Indonesia must be revised to establish a relevant digital economy market. To evaluate digital mergers, new harm theories are needed. The merger should also protect consumer data. Law Number 27 of 2022 on Personal Data Protection and Government Regulation on the Implementation of Electronic Systems and Transactions protects online consumers, a basic step in due diligence for digital mergers. The Indonesian Government should promptly strengthen the notion of “relevant markets” in the digital economy, which could lead to fair business competition violations like big data control. Notify partners or digital merger participants of the accessibility of sensitive data like transaction history and user location.

The development of digital market characteristics has implications for developing theories of harm in digital markets. Indonesian competition law needs to develop such theories of harm to analyze the potential for anticompetitive digital mergers in the digital economy era.

Strategic decisions leaders make involving organizational changes such as mergers and acquisitions (M&A), divestitures, and downsizing, which can influence and/or interact with other organizational factors. For example, within the context of M&A, changes impact financial performance, firm behaviors, and organizational culture. In addition, strategic decisions for these types of change can also interrelate with other more intrapersonal factors, including both leaders’ and employees’ health and well-being. Employee stress, also referred to as “merger syndrome,” outlines individual negative impacts of the changes including, but not limited to, cynicism and distrust, change wariness, and burnout, all accumulating to psychological effects including increases in detachment to work, stress, and sick leave. In this chapter, the authors outline the different impacts M&A phases have on stress and well-being and how they interrelate with the strategic decisions leaders make. The authors also outline future research opportunities and practical implications for how leaders and employees could better manage future major changes such as M&A activities.

The purpose of technology mergers and acquisitions (M&A) is to achieve innovation. The authors use the data from the China Patent Research System of China National Intellectual Property Administration to classify technical correlations into three types: similar, complementary and nonrelatedness (cross-sectoral category). And the authors explore three issues: the market reaction to technology-oriented M&A, the impact of technology-oriented M&A on goodwill and how technology-oriented M&A affects innovation.

The authors use data from China Patent Research System of China National Intellectual Property Administration to classify technical correlations into three types: similar, complementary and nonrelatedness (cross-sectoral category). And the authors explore three issues: the market reaction of technology-oriented M&A, the impact of technology-oriented M&A on goodwill and how technology-oriented M&A affects innovation. The empirical research shows that the cross-sectoral M&A is popular in the market and is positively correlated with cumulative abnormal return (CAR) and premium rate of M&A. However, the technology-similarity M&A, which is committed to in-depth exploration of original technology, is negatively correlated with CAR and goodwill.

The empirical research shows that cross-sectoral M&A is popular in the market and is positively correlated with CAR and premium rate of M&A. However, the technology-similarity M&A, which is committed to in-depth exploration of original technology, is negatively correlated with CAR and goodwill. In addition, empirical results show that there is an inverted U-shaped relationship between technology-oriented M&A and innovation output, and the inflection points are 41.8%, 48.9% and 38.8%, respectively.

The research contributions of this paper are as follows: first, most domestic studies simply and roughly measure the degree of technical relevance based on whether the firms belong to the same industry and whether there is common knowledge between them, but the authors provide a more accurate measure of technology-oriented M&A. Second, in the research on the economic consequences of technology-oriented M&As, a large number of literatures have mainly focused on the innovation performance of the acquirer after deals, including the number of patent applications, the number of patent citations, innovation output, etc., and they pay less attention to its impact on the market reaction and goodwill.

Acquisitions are complex and ambiguous events fraught with information asymmetries emphasizing market failure before an acquisition or organizational failure during integration. While often treated in isolation, market and organization failure are intertwined in acquisitions as integration planning starts before a deal is closed. Effective integration begins with a deep understanding of the target to be able to share assets and knowledge. However, acquiring firms currently have limited solutions to address information asymmetries. Most remedies primarily aim at market failure using due diligence and external advisors, leaving information asymmetry due to organizational failure primarily unattended. The authors develop a typology that leverages informal and formal social ties to address information asymmetries across the acquisition process that jointly considers market and organizational failure. The typology of this study combines existing research to develop how social ties with stakeholders influence acquisitions and can increase their success.

Strategy scholars have theorized that a firm's strategic leaders play an important role in firm dynamic capabilities (DCs). However, little research to date has studied how leaders shape the development of DCs. This inductive theory-building study sheds new light on the multilevel architecture of DCs by uncovering that the three core DCs – sensing, seizing, and reconfiguring – operate through distinct individual, group, and organizational processes. Further, the role of strategic leadership is critical as organizational processes create DCs only when they are purposefully designed by firms' strategic leaders to enable change and opportunity pursuit. Whether strategic leaders design processes for change and opportunity pursuit, in turn, reflects the extent to which they view change as positive and desirable. Our insights about the role of strategic leaders' positive attitude toward change as an important aspect of firm DCs uncover new interconnections between strategic leadership, organizational design, and the micro-foundations of DCs. Collectively our findings about the role of positive attitude toward change, the purposeful design of processes for change, and the varying manifestations of these processes at different levels of analysis reveal the coupling of strategic and organizational processes in enabling strategic dynamism and change.

Post-merger integration (PMI) success depends heavily on the social and cultural integration of the two legacy organizations. Given that organizational members work and exchange information through social relationships, social network analysis can serve as a useful tool to identify key actors, address areas of concern, and measure PMI success. However, few PMI studies have employed a social network perspective or social network analysis. In this chapter, the authors review the current literature on PMI and organizational change, including the few studies that use social networks approach. The authors also identify recent developments in social networks and organizational change research that can improve our understanding of PMI processes and propose promising avenues for future research. Further, the authors identify obstacles for social network research on PMI and provide practical advice for overcoming them.

A vast amount of research has been carried out to help us understand the main factors influencing mergers and acquisitions (M&A) performance. Although the existing body of knowledge focuses mainly on macro-level factors, there is an increasing interest from scholars and practitioners in understanding the micro-foundational factors occurring at individual and team levels. This chapter focuses on the importance of emotions – a central facet in individual reactions to workplace events – in M&A processes. To this end, the authors carried out a multi-phased search for articles on micro-foundations in M&A settings published by Business and Management (B/M) and Organizational Behavior and Psychology (O/P) journals. The authors reviewed 41 papers and used the circumplex model to identify and categorize 19 themes related to individual emotions involved in M&A processes in terms of positive/negative valence and high/low activation. The findings show that scholars mainly assume a risk mitigation perspective and focus on themes related to change resistance (negative emotions with high activation) by providing prescriptions on how negative emotions could be mitigated to avoid eroding acquisition performance. Hence, the authors suggest that (a) there should be more efforts to integrate different streams of literature, namely between the strategic and operational/behavioral areas of knowledge and (b) future research should focus on understanding how positive emotions like change proactivity (positive emotions with high activation) might be essential to enhance acquisition performance.