The Process of Postmerger Integration: A Review and Agenda for Future Research

Graebner, Melissa E.; Heimeriks, Koen H.; Huy, Quy Nguyen; Vaara, Eero

doi:10.5465/annals.2014.0078

Cited by 295 publications

(441 citation statements)

References 192 publications

(205 reference statements)

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“…The PMI process typically comes up against obstacles related to capturing synergy, client disruption, structural integration, employee retention, loss of identity and/or independence, customer retention, emotional trauma, loss of status, and learning challenges. These are so diverse in nature and magnitude that they have given rise to multiple definitions of PMI (see discussion in Graebner et al 2016). Here, we define post-merger integration as the process that unfolds in the aftermath of the deal closure to reconfigure merging firms by redeploying, adding, or divesting resources, lines of products or entire businesses, in order to achieve the expected combination benefits.…”

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Post-merger integration

Bodner

Capron

2018

J Org Design

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This article discusses post-merger integration (PMI) and the trade-off between the economic benefits and costs that arise when organizations merge under a new organizational structure and reconfigure their businesses and resources. To reconfiguration scholars, PMI is a crucial tool for firms to reconfigure resources, product lines, and business units to adjust to internal and external environment needs. Other scholars focus on organization design, shedding light on structural integration following an acquisition and exploring key trade-offs of this process. We integrate reconfiguration and organization design aspects on choices of what and how to integrate after mergers and acquisitions, questions that have often been treated separately. We then outline how to design and conduct empirical research on PMI. We conclude by offering ideas for future research.

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confidence: 99%

“…Other work on PMI has emphasized learning and more sociocultural perspectives, going beyond the scope of this paper (for a comprehensive review of PMI studies, see Graebner et al 2016). …”

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confidence: 99%

Post-merger integration

Bodner

Capron

2018

J Org Design

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“…Nevertheless, an interesting suggestion in the literature is to focus on emotions during socio-cultural integration. Whereas the literature largely focuses on the negative (e.g., Graebner et al, 2017), positivity has been found to be an important contributor to (e.g., Kusstatscher, 2006;Raitis et al, 2017), and therefore a fruitful topic of research on, socio-cultural integration.…”

Section: Propositions and Conclusionmentioning

confidence: 99%

“…Especially participative, reflective, and positive communication enhances socio-cultural integration (Clayton, 2010). Although previous studies have highlighted the importance of communication (e.g., Schweiger and DeNisi, 1991;Weber and Tarba, 2010;Angwin, 2016), the need for a deeper understanding of specific communication practices and tools used in socio-cultural integration persists (Graebner et al, 2017). The effectiveness of different communication means for dealing with conflict during socio-cultural integration, therefore, necessitates further research (Weber and Drori, 2011).…”

Section: Propositions and Conclusionmentioning

confidence: 99%

“…While mergers and acquisitions (M&A) [1] have become increasingly popular as a method of achieving organizational growth and development (World Investment Report, 2016), the acquisition success rate has remained mediocre at best (e.g., Cartwright and Schoenberg, 2006;Schoenberg, 2006;Graebner et al, 2017). The growing body of literature on postacquisition integration focusing on the human side of M&A argues that failure is largely due to socio-cultural challenges, such as resistance to change and acculturation stress (e.g., Very et al, 1996;Birkinshaw et al, 2000;Stahl and Voigt, 2008;Sarala et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

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Dialogue as a source of positive emotions during cross-border post-acquisition socio-cultural integration

Harikkala-Laihinen

Hassett

Raitis

et al. 2017

CCSM

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Purpose The purpose of this paper is to analyse how dialogue can be used to promote post-acquisition socio-cultural integration. Specifically, it addresses questions regarding when and how companies can utilise dialogue to generate positivity regarding socio-cultural integration. Design/methodology/approach A single case study approach was adopted owing to its suitability for creating in-depth understanding in the context of socio-cultural integration. Primary data were collected via interviews, an employee satisfaction survey, and participant observation. Secondary data were obtained from the case company’s internal materials, such as strategies, integration workflows, and employee magazines. Analysis methods included descriptive statistics and thematic qualitative analysis. Findings The findings suggest that dialogue can be used to create positivity regarding socio-cultural integration throughout the stages of unfreezing, moving, and refreezing by actively engaging employees in voicing, listening, respecting, and suspending. It is proposed that cultural conflict during post-acquisition socio-cultural integration can be overcome through the generation of positivity; dialogue enables the collective management of emotions during post-acquisition integration by offering a platform for creating positivity and social cohesion; and due to its collaborative and engaging nature, dialogue provides an especially effective means of communication for overcoming cross-cultural conflict. Originality/value To the authors’ knowledge, this is the first attempt to showcase dialogue as a specific means of communication for creating positivity during cross-border socio-cultural integration. This study reached beyond comparative cultural research to offer views on positivity, emotion during socio-cultural integration, and dialogue as means for overcoming cross-cultural conflict.

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Complexity offering opportunity: Mutual learning between Zhejiang Geely Holding Group and Volvo Cars in the post‐acquisition process

Jönsson

Vahlne

2021

Global Strategy Journal

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Research SummaryWhile much of the literature on complex global environments builds on studies of multinationals from mature markets, little is known about how firms from emerging markets understand and cope with complexity. This paper builds on a longitudinal case study of Zhejiang Geely Holding Group (ZGH) in the post‐acquisition process of Volvo Car Group (VCG) and its efforts to learn how to learn in order to catch up with the internationalization process as means for developing capabilities and compete in the global automotive industry. Building on the Uppsala model, we contribute with insights how an emerging market multinational understands complexity and organize the post‐acquisition process to explicitly emphasize the importance of mutual learning to develop and exploit opportunities to improve the business.Managerial SummaryA key finding is that ZGH does not understand complexity only as a risk that should be coped with, managed and controlled—following the western idea of risk management—but also as an opportunity for learning. While the importance of knowledge management and organizational learning is often emphasized as a means to achieve competitive advantage, it is seldom as easily managed in practice. Building on insights from ZGH we illustrate that to enable knowledge development and mutual learning, top‐management from the acquiring firm needs to emphasize learning and trust the acquired firm rather than controlling it. It is equally important that the acquired firm trust the intentions of the new owner and reflect on the interest in learning—not least to improve and remain valuable.

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The Process of Postmerger Integration: A Review and Agenda for Future Research

Cited by 295 publications

References 192 publications

Post-merger integration

Post-merger integration

Dialogue as a source of positive emotions during cross-border post-acquisition socio-cultural integration

Complexity offering opportunity: Mutual learning between Zhejiang Geely Holding Group and Volvo Cars in the post‐acquisition process

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