Intergroup dynamics in post-merger integration process

Abstract

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.

Hyper-project portfolio management: post-merger project portfolios

“…The second is the managerial capability (Durand, 2016; Oh and Johnston, 2020; Steigenberger, 2017; Thelisson and Meier, 2022) DMs can define the existing strategy normatively and execution phase of PPM prescriptively with the support of H-PPM. Also, DMs can find a logical linkage between policy & CURV to start a challenging PPM.…”

“…, 2022; Schlindwein and Geppert, 2020; Thelisson et al. , 2020; Thelisson and Meier, 2022; Weber et al. , 2012; Yang et al.…”

“…, 2020; Khan et al. , 2020; Kroon and Noorderhaven, 2018; Kroon and Reif, 2023; Safavi, 2021; Thelisson and Meier, 2022).…”

“…Most researchers studied the structural integration of PMI overwhelmingly (Bauer et al, 2015(Bauer et al, , 2018Fern andez et al, 2019;Graebner et al, 2017;Lauser, 2010;Maire and Collerette, 2011;Oh and Johnston, 2020;Uzelac et al, 2016). Another avenue generating prolific descriptive studies is the human side of PMI to catch the desired synergy level (Durand, 2016;Fiorentino and Garzella, 2015;Gomes et al, 2013;Al Hosani et al, 2020;Khan et al, 2020;Kroon and Noorderhaven, 2018;Kroon and Reif, 2023;Safavi, 2021;Sales et al, Schlindwein and Geppert, 2020;Thelisson et al, 2020;Thelisson and Meier, 2022;Weber et al, 2012;Yang et al, 2019).…”

“…It is usual to encounter M&A failure (Warter, 2019). In a post-merger situation, strategic movement can still be challenging as the combined entity and new organization settle (Bodner and Capron, 2018;Al Hosani et al, 2020;Sch€ onreiter, 2018;Thelisson and Meier, 2022).…”