Managing Mergers Across Borders: A Two-Nation Exploration of a Nationally Bound Administrative Heritage

Lubatkin, Michael; Calori, Roland; Véry, Philippe; Veiga, John F.

doi:10.1287/orsc.9.6.670

Cited by 170 publications

(114 citation statements)

References 45 publications

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“…Research suggests that unfavorable judgments can build from the differences in organization culture (Riad, 2005;Stahl and Voigt, 2008), national culture (Lubatkin et al, 1998) as well as due to the construction of us vs. them identities between the merging parties (Maguire and Phillips, 2008). As a result, the integration required to reap potential synergies (Birkinshaw et al, 2000;Larsson and Finkelstein, 1999) can become contested and resisted as illegitimate (Buono and Bowditch, 2003;Vaara and Monin, 2010).…”

Section: Legitimation In the Context Of Post-merger Integration Challmentioning

confidence: 99%

Legitimacy defense during post-merger integration: Between coupling and compartmentalization

Sinha

Daellenbach

Bednarek

2015

Strategic Organization

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During post-merger integration, the realization of the benefits of potential synergies depends on managing the legitimacy of the merger. However, we still know little about how threats that change stakeholders' assessments of a merger's legitimacy are managed. This study is based on the merger case of Air New Zealand's trans-national acquisition of Ansett Australia where a delegitimizing event occurred at Ansett relatively early after the integration had started. The study builds a framework of an evolving legitimation process depicting the oscillation between legitimation responses that maintain the coupling between the two organizations and a compartmentalization response used to manage diverse stakeholders' legitimacy demands and illegitimacy spillover concerns. We explain how these legitimation responses can create an unproductive oscillation where stakeholder assessments of illegitimacy build up and ultimately become unresolvable. Our processual framework provides novel insights regarding when attempts to defend legitimacy can prove selfdefeating, demonstrating how previous responses emphasizing integration or separation can affect the success of subsequent swings back to coupling or compartmentalization.

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Section: Legitimation In the Context Of Post-merger Integration Challmentioning

confidence: 99%

Legitimacy defense during post-merger integration: Between coupling and compartmentalization

Sinha

Daellenbach

Bednarek

2015

Strategic Organization

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“…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).…”

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confidence: 99%

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

Vaara

Monin

2010

Organization Science

257

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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“…It is a culture of economics (profits) rather than a culture of values (morals) '. 1996), have also played a significant role in international mergers and acquisitions, from preacquisition management (Angwin 2001) to the integrating mechanisms used to establish headquarter-subsidiary control (Lubatkin et al 1998). As Calori et al (1994) conclude, firms are guided by their national administrative heritage when they acquire companies abroad.…”

Section: National Culture In Business Studiesmentioning

confidence: 99%

Homo Nationis: The Psychosocial Infrastructure of the Nation-State Order

Pickel¹

2006

The Problem of Order in the Global Age

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The central argument of this paper is that the global expansion of sovereign nation-states has been accompanied by the emergence of a particular type of modern individual, homo nationis. The general significance of this argument lies in the fact that this personality type, which is either taken for granted (untheorized) or ignored, constitutes an integral component of modern social order. That is, in addition to the constitutional and institutional foundations of the state and its political economy, the nation-state has a psychosocial foundation -a "national habitus." The concepts of homo nationis and national habitus underscore that modern individuals are historical individuals, i.e. they have personality structures that are unlike those of individuals in other historical epochs, and that they should be explicitly conceptualized as such, rather than as a transhistorical homo oeconomicus or homo sociologicus. Many fundamental social processes, including those discussed under globalization, can be better explained with such a conception. The historical-structural context for homo nationis is the world order of nation-states that has only recently finished formally incorporating all other social formations from tribes to the remnants of empires, as well as the specific state-society to which the individual belongs.The paper notes the interest Durkheim and Weber had in habitual behaviour and draws on the exemplary work of Norbert Elias on national habitus to sketch its conception of homo nationis. The paper then assembles further evidence for the existence and significance of national habitus by perusing a diverse set of scholarly literatures, including national culture in business studies, national economies and economic nations, nationalism, comparative sociology, and normative political theory.

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Managing Mergers Across Borders: A Two-Nation Exploration of a Nationally Bound Administrative Heritage

Cited by 170 publications

References 45 publications

Legitimacy defense during post-merger integration: Between coupling and compartmentalization

Legitimacy defense during post-merger integration: Between coupling and compartmentalization

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

Homo Nationis: The Psychosocial Infrastructure of the Nation-State Order

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