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Challenges And Stakes Of The Post-Acquisition Integration Process

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  • Mariana Vancea

Abstract

Over the last few decades mergers and the acquisitions, both the international and the national ones, have become strategic instruments of growth and development of enterprises. A sensible aspect regarding the merger or the acquisition operations is that of integrating the entities had in view. Because it is considered that the high rate of the failure of the operations is due to unsuccessful integration of the entities, we have decided to identify the challenges occurring in this phase and the factors influencing mostly the integration process. Our research tackles aspects regarding the challenges resulting from a merger or acquisition operation, within the integration phase of the entities involved. Thus, we analysed the importance of the human and cultural factors and the challenges resulting from this integration process, for we consider that these factors have a strong impact on the post-acquisition performance and they can ensure the success of the integration. We found that the acquiring firms are affected by changes during the integration process, by retaining the important resources, the transfer of resources from or to the acquired firms and by eliminating the redundant resources. Yet, in the integration phase, the problems may occur due to human factors, cultural incompatibility and an inappropriate management of the integration process.

Suggested Citation

  • Mariana Vancea, 2011. "Challenges And Stakes Of The Post-Acquisition Integration Process," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(13), pages 1-18.
  • Handle: RePEc:alu:journl:v:1:y:2011:i:13:p:18
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    References listed on IDEAS

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    1. Pierre Dussauge & Laurence Capron & Will Mitchell, 1998. "Resource redeployment following horizontal acquisitions in Europe and North America, 1988-1992," Post-Print hal-00464384, HAL.
    2. Piero Morosini & Scott Shane & Harbir Singh, 1998. "National Cultural Distance and Cross-Border Acquisition Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 137-158, March.
    3. Royston Greenwood & C. R. Hinings & John Brown, 1994. "Merging Professional Service Firms," Organization Science, INFORMS, vol. 5(2), pages 239-257, May.
    4. Deepak K. Datta, 1991. "Organizational fit and acquisition performance: Effects of post‐acquisition integration," Strategic Management Journal, Wiley Blackwell, vol. 12(4), pages 281-297, May.
    5. repec:dau:papers:123456789/8350 is not listed on IDEAS
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    More about this item

    Keywords

    mergers and acquisitions; post-acquisition integration; organizational culture; human capital;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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