Recasting the dynamics of post-acquisition integration:an embeddedness perspective

M&A scholars have generally assumed that post-acquisition integration is a self-contained process. However this ignores that this process rarely unfolds as the only ongoing initiative in an organization. We contend that post-acquisition integration is not detached from other simultaneous change processes in the organizational context and this has important implications for our understanding of how integration dynamics actually evolve. To further understand this embeddedness we examine the unfolding of a post-acquisition integration process in a company faced with an unanticipated drop in demand due to the global economic crisis. Through a qualitative, longitudinal study conducted over three years, we carried out 151 interviews to uncover the unfolding of the post-acquisition process. We find that post-acquisition integration is embedded in a set of co-evolving processes. We highlight four mechanisms (coordination, cohesion, disconnection, alienation) that arise from the co-evolution of processes that either facilitate or impede integration. Our findings contribute to our understanding of post-acquisition integration dynamics by recasting the integration process as embedded in a set of co-evolving processes that shape its unfolding

Organizational identity work in MNE subsidiaries: Managing dual embeddedness

acceptedVersio

En fusjon mellom likeverdige? Integrasjonen av Statoil og Hydros olje- og gassaktiviteter

I denne rapporten presenteres noen av de viktigste overordnete funnene fra følgeforskningsprogrammet. Forskningsresultatene er presentert i sin helhet i boken ”A Merger of Equals?” Fagbokforlaget. Denne komprimerte og norske versjonen tar for seg: 1. Overordnete mål og resultater fra integrasjonen 2. Partssamarbeid og fagforeningenes rolle 3. Utvikling av global identitet etter fusjone

Serieoppkjøp : Økt effektivitet - eller det motsatte?

Virksomheter som gjennomfører en rekke oppkjøp som del av sin strategi kaller vi serieoppkjøpere. I denne artikkelen ser vi på eksisterende forskning på serieoppkjøp. Vi er spesielt opptatt av utfordringer i forbindelse med integrasjon og hvordan virksomheter kan skape verdi ved å gjøre flere oppkjøp etter hverandre. Artikkelen er knyttet il intervjuet med Steinar Sønsteby, som selv har vært involvert i over 80 oppkjøp. Tidligere forskning er ikke entydig i effektene av serieoppkjøp. På den ene siden kan en bedrift lære av tidligere oppkjøp og gjennom økt erfaring bli mer effektiv, mens bedriften på den annen side må håndtere flere, gjerne ulike integrasjonsprosesser, noe som kan føre til motstand og økt kompleksitet. Vi ser på forskning på oppkjøp og identifiserer områder der serieoppkjøpere kan genere erfaring, og områder som vil skape integrasjonsutfordringer. Ved å koble tidligere forskning med erfaringer fra Atea, diskuterer vi fire elementer som blir særlig viktige for serieoppkjøpere: visjon og strategi, integrasjonsprosessen, generering av oppkjøpserfaring og typer av denne, samt håndtering av egne ansatte. Dette er elementer som forhåpentligvis vil stå sterkere på agendaen til både forskere og praktikere i årene som kommer

Facilitating integration and maintaining autonomy: The role of managerial action and interaction in post-acquisition capability transfer

Through acquisitions, firms can access resources and capabilities they cannot develop on their own. Post-acquisition, a key managerial challenge is balancing the need for integration, to transfer capabilities, with the need for autonomy, to preserve knowledge-based capabilities. Drawing on extensive qualitative data, I find that this balancing involves managerial perceptions and actions that unfold in a reciprocal and dynamic process, resulting in capability transfer. I identify two distinct trajectories of capability transfer, one driven by the acquiring managers’ perceptions of valuable capabilities in the target, and one driven by the target managers’ desire to shield their capabilities from deterioration. This study contributes to the post-acquisition integration literature by conceptualizing the role played by target and acquiring firm managers in the dynamic, reciprocal, and sequential process of post-acquisition capability transfer

Facilitating integration and maintaining autonomy: The role of managerial action and interaction in post-acquisition capability transfer

Through acquisitions, firms can access resources and capabilities they cannot develop on their own. Post-acquisition, a key managerial challenge is balancing the need for integration, to transfer capabilities, with the need for autonomy, to preserve knowledge-based capabilities. Drawing on extensive qualitative data, I find that this balancing involves managerial perceptions and actions that unfold in a reciprocal and dynamic process, resulting in capability transfer. I identify two distinct trajectories of capability transfer, one driven by the acquiring managers’ perceptions of valuable capabilities in the target, and one driven by the target managers’ desire to shield their capabilities from deterioration. This study contributes to the post-acquisition integration literature by conceptualizing the role played by target and acquiring firm managers in the dynamic, reciprocal, and sequential process of post-acquisition capability transfer

Theorizing in the qualitative study of mergers & acquisitions

This paper focuses on theorizing in the study of mergers and acquisitions (M&As), a globally significant inter-organizational phenomenon. We analyze 76 qualitative papers on M&As published in leading management journals between 1966–2016. We identify five modes of theorizing in the study of M&As. We find that M&A scholars make theoretical contributions using different theoretical positioning and research design strategies. The majority of the papers offer a contribution to middle-range theorizing (i.e., the literature on M&As), while a third of the papers also contribute to higher-order, or grand theories in management. In closing, this leads us to call for a rejuvenation of middle-range theorizing in management research

Postacquisition boundary spanning : a relational perspective on integration

Through a longitudinal, qualitative study, we explore how preexisting embedded relationships shape boundary-spanning actions in the postacquisition integration process. We examine the role of union representatives in the integration process and find that in our case, they are significant boundary spanners. They share knowledge, promote the acquisition, and mitigate conflicts both within and between the merging organizations. Their intra- and interorganizational preacquisition relationships are the contingencies for their boundary-spanning actions. Our study makes several contributions to the literature. First, we show how a set of actors, mostly ignored by the mergers and acquisitions literature, can play a key facilitating role in the integration process. Second, we extend the understanding of the autonomy-integration dilemma in the postacquisition integration literature by conceptualizing preexisting relationships as precursors to postacquisition boundary spanning. Third, we challenge the classical conception of relational inertia as a path-dependent hindrance by showing that preexisting relationships can be leveraged to facilitate postacquisition integration. Finally, we contribute to the boundary-spanning literature by identifying the nature of embedded preacquisition relationships as an important contingency to boundary-spanning actions in interorganizational encounters

Organizational identification and serendipitous value creation in post acquisition integration

This is the authors’ final, accepted and refereed manuscriptThis study tells the story of two acquisitions made by a company the authors call Multifirm. Multifirm acquired two targets, Datagon and Teknico. The Datagon employees immediately identified with Multifirm, and the integration process was characterized by few conflicts and satisfied employees. The Teknico employees, on the other hand, failed to identify with Multifirm, and the integration process was fraught with disruptions and conflicts. Contrary to the conventional wisdom of identity threats, Multifirm reported that more value was created from the acquisition of Teknico than from Datagon. In this article, we try to understand why this was the case