Organizational Integration of Acquired Biotechnology Companies into Pharmaceutical Companies: The Need for a Hybrid Approach

Schweizer, Lars

doi:10.5465/amj.2005.19573109

Cited by 295 publications

(321 citation statements)

References 71 publications

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“…In recent cases such as MittalArcelor, it seems as if synergies were used as official justifications even though there was widespread speculation that the actual motives might be more related to power. The pharmaceutical industry has itself gone through a series of mergers and acquisitions (Schweizer 2005). It appears that in cases such as Astra-Zeneca (Hellgren et al 2002) or Sanofi-Aventis (Mittra 2006), specific synergies have played a central role in official legitimation, whereas other concerns have been silenced.…”

Section: Dynamicsmentioning

confidence: 99%

“…Studies looking at the strategic (Haspeslagh and Jemison 1991, Larsson and Finkelstein 1999, Schweizer 2005, Puranam et al 2006, Shaver 2006, human resource (Buono and Bowditch 1989, Schweiger and DeNisi 1991, Greenwood et al 1994, cultural (Olie 1994, Gertsen et al 1998, Lubatkin et al 1998, Stahl and Mendenhall 2005, and political (Hambrick and Cannella 1993, Vaara 2003, Paruchuriet al 2006) aspects have all pointed to the complex and unpredictable nature of these processes. In particular, the initial ideas or plans concerning synergy or value most often have to be modified and new justifications developed (Haspeslagh and Jemison 1991).…”

mentioning

confidence: 99%

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A Recursive Perspective on Discursive Legitimation and Organizational Action in Mergers and Acquisitions

Vaara

Monin

2010

Organization Science

277

282

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This paper challenges the predominant view that legitimation is merely a specific phase in merger or acquisition processes. We argue that a better understanding of postmerger organizational dynamics calls for conceptualization of discursive legitimation as an inherent part of unfolding merger processes. In particular, we focus on the recursive relationship between legitimation and organizational action. We have two objectives: to outline a theoretical model that helps one to understand the dynamics of discursive legitimation and organizational action in postmerger organizations, and to examine a revealing case to distinguish the inherent risks and problems in discursive legitimation. Our case analysis focuses on the merger between the French pharmaceutical companies BioMérieux and Pierre Fabre. We adopt a critical multimethod approach and distinguish specific discursive dynamics and pathological tendencies in this case. The analysis highlights the unintended consequences of discursive legitimation, the central role of sensegiving and sensehiding in discursive legitimation, the inherently political nature of legitimation and the risks associated with politicization, the special problems associated with fashionable discourses and the role of the media, the use of specific discursive strategies for legitimation and delegitimation, and the crucial role of actual integration results. This analysis adds to the existing research on mergers and acquisitions by treating discursive legitimation as part of the merger dynamics. In particular, our case analysis provides a new explanation for merger failure. We also believe that the recursive model connecting discursive legitimation and delegitimation strategies to concrete organizational action makes a more general contribution to our understanding of organizational legitimation.

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Section: Dynamicsmentioning

confidence: 99%

mentioning

confidence: 99%

A Recursive Perspective on Discursive Legitimation and Organizational Action in Mergers and Acquisitions

Vaara

Monin

2010

Organization Science

277

282

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“…Chatterjee et al, 1992;Vaara, 2000). As the organizations merged, the agglomeration of practices and systems simultaneously created internal competition for dominance (see also Meyer & Altenborg, 2007;Schweitzer, 2006). Management promoted a culture of agility, improvisation, quick response, and customer orientation, which were considered the dominant characteristics of Intercom, as well as the orderly, coordinated, and planned work systems of Extercom.…”

Section: Discussionmentioning

confidence: 99%

“…By positioning the merger as one of equals, it was the differences-not the synergies-of the premerger cultures that became a shared and accepted mechanism for creating cohesion in BroadBand. Furthermore, changing the meaning of equality facilitated integration by adapting both new and old work practices and routines (Schweitzer, 2006). At BroadBand, selecting the values and practices was based on the need to retain established competencies and routines, while at the same time building new ones according to the merger strategy.…”

Section: Discussionmentioning

confidence: 99%

Cultural clashes in a “merger of equals”: The case of high‐tech start‐ups

Drori

Wrzesniewski

Ellis

2011

Human Resource Management

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“…Research has shown, albeit not in a PMI context, that the success of IS implementation projects is highly dependent on effective collaboration among individuals in different professional communities (Levina & Vaast, 2005;Suchman, 2002). Given the difficulties that plague the PMI process, collaboration is likely to be challenging since the actors involved abide by different local, social, and cultural rules founded in different organizational contexts (Schweizer, 2005).…”

Section: Introductionmentioning

confidence: 99%

Organizational identity challenges in a post-merger context: A case study of an information system implementation project

Vieru

Rivard

2014

International Journal of Information Management

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a b s t r a c tThis study examines the effects of the differences in organizational identities that emerged during a postmerger project that aimed at unifying the laboratory services of a large healthcare center that resulted from the merging of three hospitals by supporting them with a unique information system. We draw on the concepts of organizational identity and sensemaking to analyze the laboratory information system implementation project. Organizational identity is conceptualized as the mental representation that organizational members have of themselves as a social group in terms of practices, norms, and values and how they understand themselves to be different from members of other organizations. Data analysis suggests that divergent organizational identities and team members' alternative interpretations of others' practices, norms and organizational symbols, coexist during the post-merger integration phase. These interpretations are reflected in the final functionality of the information system that was different from the planned one.

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Organizational Integration of Acquired Biotechnology Companies into Pharmaceutical Companies: The Need for a Hybrid Approach

Cited by 295 publications

References 71 publications

A Recursive Perspective on Discursive Legitimation and Organizational Action in Mergers and Acquisitions

A Recursive Perspective on Discursive Legitimation and Organizational Action in Mergers and Acquisitions

Cultural clashes in a “merger of equals”: The case of high‐tech start‐ups

Organizational identity challenges in a post-merger context: A case study of an information system implementation project

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