Purpose The purpose of this paper is to explore how a company reaches organizational ambidexterity during a merger process. Organizational ambidexterity refers to the proactive adaptations of an organization to simultaneously explore and exploit. Design/methodology/approach The paper presents a longitudinal case study of a public-private merger of two listed French companies. The data were collected from participant observation, interviews and archival documentation over two years. Findings The balance between autonomy and control by the parent companies evolves during the post-merger integration. The findings reveal that there was no concordance between the oscillations between autonomy and control on the part of the parent companies and the new organization’s exploration/exploitation strategies. However, the progressive evolution of control and autonomy from the parent companies engendered organizational ambidexterity during the third phase integration. Practical implications The study adds insight into how organizations can develop ways to manage organizational ambidexterity dynamics by employing temporal mechanisms, referring to an organization’s shifting sequentially between exploration and exploitation. The case highlights how temporal switching between exploration and exploitation occurs to ultimately enable ambidexterity. Originality/value Although organizational ambidexterity is recognized as a key element for post-merger integration, how it is achieved over the course of the merger process has received little attention. The study highlights that in the case of public-private mergers, the parent companies influence exploration and/or exploitation strategies. The paper adds insights on whether exploration and exploitation can be differentiated over time and whether exploration and exploitation can be reconciled at the same time.
Purpose Intergroup dynamics between the acquirer and the acquired are determinants of post-merger integration success. Mergers and acquisitions scholars call for the adoption of new reading prisms to gain deeper insights on post-merger integration dynamics as the failure rate of mergers remains high. In mobilizing works from social psychology to examine intergroup dynamics, this study aims to respond to this call by shedding light on the post-merger integration process. Typologies of integration processes do not take into account intergroup dynamics that operate within the new entity, which are influencing the decision-making process. To better understand how firms achieve a successful integration (symbiosis), the authors propose a processual analysis of intergroup dynamics in post-merger integration. Design/methodology/approach The research approach is a qualitative, longitudinal enquiry, which allows us to examine intergroup dynamics in two real-time merger case studies. The integration processes selected for this research include symbiotic integrations. Both integration processes were analyzed over two years, starting with the merger agreement. Findings This study sheds additional light on the triggers for achieving symbiosis integration by demonstrating the specific role and contribution of each of the parties (majority and minority) during the process. This study shows that post-merger is a process that follows different steps to reach symbiosis, involving majority/minority dynamics. The symbiosis implies minority innovation by adopting new business and organizational practices, mainly inspired by the standards and values of the minority. The study highlights innovation by the minority as a key element in achieving a symbiotic integration. This element can be understood by managers involved in managing the integration as a turning point in the integration process. Research limitations/implications The authors investigated symbiotic integration in specific industries; questions can arise about the extent to which findings are transferable to other mergers and acquisitions contexts. Originality/value This study advances the understanding of the dynamics between the majority and minority in adopting a processual and longitudinal analysis. On that point, this study gains insights on the “black box” that represents post-merger integration process.
This article underlines the specificities of public–private mergers by presenting the interactions between the institutional logics at stake and the cultural dynamics during the integration process of a public–private merger. The article presents a longitudinal case study of a public–private merger of two listed French companies over two years. Our study completes and enriches Schultz’s model by showing its dynamic nature and highlighting the crucial role of the state as a trigger for the interactions between institutional logics and cultural dynamics. Points for practitioners By highlighting the interactions between cultural dynamics and institutional logics, we trace how cultural dynamics influence the decision-making process and how institutional logics influence integration by becoming dominant. We demonstrate how the state influences the interactions between these forces during the integration process.
Legitimation during post‐merger integration is a challenging nonlinear process influenced by the key public, private, and hybrid dynamics. In contrast to the planned characterization of merger integration, legitimation is a nonlinear process. Legitimacy is crucial to organizational change, especially in the context of a merger; managers need to understand the oscillating dynamics from public and private logics during the integration period. The legitimation process during a merger comprises three key processes: public, private, and hybrid. These are tools for managers involved in a public–private integration.
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