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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: 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…

2509

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: 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: 7 December 2020

Tommaso Ramus, Antonino Vaccaro, Pietro Versari and Stefano Brusoni

A key challenge for hybrid organizations is managing to recombine the different institutional logics they incorporate while navigating complex, fast-changing environments. To…

Abstract

A key challenge for hybrid organizations is managing to recombine the different institutional logics they incorporate while navigating complex, fast-changing environments. To examine how hybrids address this issue, the authors analyze the evolution of the Italian fiscal police – the Guardia di Finanza – from its foundation in 1862. Building on this unique case of a fiscal law enforcement agency that incorporates public fiscal and military logics, the authors propose that hybrid organizations can integrate the different logics they incorporate on the basis of four mechanisms. The mechanisms of upward and downward vertical integration trigger the integration of different logics throughout the entire organization. Integrated horizontal task extension and integrated horizontal competency extension enable an organization to manage a broader range of tasks while it develops the competencies that environmental complexity demands. These four mechanisms interact and, when properly managed, reinforce each other. With this chapter, the authors contribute to research on the processual nature of organizational hybridity and to broader research on the role of structures and competencies in dealing with environmental complexity.

Article
Publication date: 27 February 2023

Xiaosong Jason Wu, Randi Jiang, Jacob Chia-An Tsai and Gary Klein

An enterprise system (ES) implementation proceeds as a multi-team system (MTS), with multiple project teams spanning time and business functions to meet organization-wide goals…

Abstract

Purpose

An enterprise system (ES) implementation proceeds as a multi-team system (MTS), with multiple project teams spanning time and business functions to meet organization-wide goals. Thus, the focus shifts from the output of a single project team to the outcomes of all ES project teams as part of the larger MTS. This study extends concepts of shared mental models (SMMs) in aspects of goals and plans in both MTS level and project team level and further examines SMMs' interactive impact on the MTS-based project performance.

Design/methodology/approach

This study tests the model with survey data from 140 MTS-based ES implementations in China. Partial Least Squares Structural Equation Modeling (PLS SEM) served to test the hypothesized relationships.

Findings

SMMs of project team-level goals and plans contribute to the cooperation and coordination in the ES implementation and thereby improve final implementation efficiency either directly or in combination. However, SMMs of MTS-level goal and plans contribute integration only when considered with achievements at the project level.

Originality/value

Prior literature suggests a critical role of integration among ES project teams but finds challenges in achieving such integration. By leveraging shared mental model theory, the authors' results show that both common goal and plan understandings in the integration team critically influence integration in ES implementation and, thus, the final ES implementation efficiency, though not in a strictly linear relationship.

Details

International Journal of Managing Projects in Business, vol. 16 no. 2
Type: Research Article
ISSN: 1753-8378

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…

1183

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

Article
Publication date: 20 April 2015

Florian Bauer, Julia Hautz and Kurt Matzler

The purpose of this paper is to detect and challenge generally accepted management and consulting practice in Mergers & Acquisitions (M&As). M&As have been an important issue in…

1883

Abstract

Purpose

The purpose of this paper is to detect and challenge generally accepted management and consulting practice in Mergers & Acquisitions (M&As). M&As have been an important issue in strategic management and corporate development for decades. The integration process of two separate entities has been found to be of importance, and has, accordingly, received a significant amount of attention by research, management and consulting literature. Based on these insights, managers tend to rely on well-established and generally accepted rules developed by practice and consultants that should support a successful integration process and the generation of value. Nonetheless, M&As’ efforts still often fail to create value. So is the common practice of the established drivers and beneficial consequences of the integration of M&As right, or do the experiences of consultants, companies and managers reveal something different?

Design/methodology/approach

To understand these challenges, the authors spent four years studying M&A projects and subsequent integration processes of more than 400 companies that engaged in M&A efforts. The data derived from four survey-based quantitative studies among more than 430 CEOs, CFOs and other senior managers in the field of M&As and personal interviews that were conducted to get in-depth insights.

Findings

This extensive research on the efforts and projects of M&As over many years and including many companies reveals that successful integration processes are complex, social and culturally dependent endeavors and that the application of commonly accepted and established principles oversimplifies and disregards the interdependencies.

Originality/value

The present paper unveils four established principles concerning the successful integration after M&As as tenacious myths and provides more differentiated insights into value-destroying and value-creating mechanisms in M&As.

Details

Journal of Business Strategy, vol. 36 no. 2
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 13 June 2008

Athina Vasilaki and Nicholas O'Regan

The purpose of this paper is to address the link between the effectiveness of the top management team (TMT) and post‐acquisition organisational performance.

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Abstract

Purpose

The purpose of this paper is to address the link between the effectiveness of the top management team (TMT) and post‐acquisition organisational performance.

Design/methodology/approach

The paper undertakes a literature review, identifies four streams of research regarding TMT effectiveness and explores the role of TMT in the post‐acquisition integration process.

Findings

The paper identified the characteristics of an effective TMT in the post‐acquisition integration context. It pointed to the fact that, if TMTs effectively utilise the resources, effectively manage group processes and demonstrate high levels of group task leadership as well as personal integration to the task, then it will lead to an effective decision‐making process, demonstrate vision and be able to exert influence and commitment to the goal from their subordinates.

Practical implications

The paper can be used by managers to help them identify the critical factors that contribute to the success of an acquisition.

Originality/value

The paper addresses the literature on TMT effectiveness, applies it to the M&A context and proposes a way of examining this relationship.

Details

Team Performance Management: An International Journal, vol. 14 no. 3/4
Type: Research Article
ISSN: 1352-7592

Keywords

Article
Publication date: 2 October 2007

Eva‐Maria Kern and Wolfgang Kersten

The purpose of this article is to introduce a framework for internet supported inter‐organizational product development, which enables companies to efficiently configure their…

Abstract

Purpose

The purpose of this article is to introduce a framework for internet supported inter‐organizational product development, which enables companies to efficiently configure their development processes according to their needs.

Design/methodology/approach

Three ideal types of partner integration are identified and specific design guidelines for each type are proposed. Current approaches for product development collaboration are analysed. Based on their shortcomings the main approach of this paper evolves. Additionally the main results of interviews with experts are used to develop and introduce a framework which has been tested partially in the shipbuilding industry.

Findings

The paper identifies three types of partner integration and proposes specific design guidelines.

Research limitations/implications

The framework introduced in this paper provides guidance for future research in the area of product development collaboration.

Practical implications

The framework further supports managers in designing efficient and effective inter‐organizational product development collaboration by choosing the appropriate level of partner integration.

Originality/value

The paper presents a practical and usable framework for internet supported inter‐organizational product development collaboration. The main focus is on designing the partnership interaction.

Details

Journal of Enterprise Information Management, vol. 20 no. 5
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 6 July 2015

Aihie Osarenkhoe and Akmal Hyder

A review of extant literatures shows that most mergers fail during the integration process. Little is known about how the realization of operating synergies and dissemination of…

3383

Abstract

Purpose

A review of extant literatures shows that most mergers fail during the integration process. Little is known about how the realization of operating synergies and dissemination of available know-how in the merged firm are managed in the post-merger phase. The purpose of this paper is to provide insights on the process of integrating operating synergies by focusing on the critical success factors that facilitate integration of the skills of merged banks.

Design/methodology/approach

The authors draw on three research traditions in merger literature and reconcile them with three dimensions of integration. In-depth interviews were conducted with Nordea managers from four Nordic countries.

Findings

Having learned from the mistakes of previous mergers, Nordea’s “guiding star” for managing its post-merger integration process was expressed as focus, speed and performance from top management. A hands-on leadership style, vision-led thinking, a bias for action, involvement of the entire staff, continuous focus on customers, open and honest communication with employees are critical to success.

Practical implications

The motive for a merger has an important impact on the degree of interaction and degree of integration. The authors expand on previous findings by, among other things, synthesizing three theoretical lenses into an integrative model, and addresses post-merger issues with a sharp eye towards clear managerial relevance.

Originality/value

The authors respond to the call to expand inter-firm relationships study beyond the narrow dyadic relationship focus and not solely conceptualize mergers as one of companies’ entry modes to implement mechanistic growth strategy. The three dimensions of integration imbued with three research traditions in merger literature provides us with a conceptual lens to conceive mergers also as engines for change emerging from the merged firms to enhance a bespoke performance of their business process.

Details

Business Process Management Journal, vol. 21 no. 4
Type: Research Article
ISSN: 1463-7154

Keywords

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