IDEAS home Printed from https://ideas.repec.org/a/spr/jorgde/v7y2018i1d10.1186_s41469-018-0027-4.html
   My bibliography  Save this article

Post-merger integration

Author

Listed:
  • Julia Bodner

    (INSEAD)

  • Laurence Capron

    (INSEAD)

Abstract

This article discusses post-merger integration (PMI) and the trade-off between the economic benefits and costs that arise when organizations merge under a new organizational structure and reconfigure their businesses and resources. To reconfiguration scholars, PMI is a crucial tool for firms to reconfigure resources, product lines, and business units to adjust to internal and external environment needs. Other scholars focus on organization design, shedding light on structural integration following an acquisition and exploring key trade-offs of this process. We integrate reconfiguration and organization design aspects on choices of what and how to integrate after mergers and acquisitions, questions that have often been treated separately. We then outline how to design and conduct empirical research on PMI. We conclude by offering ideas for future research.

Suggested Citation

  • Julia Bodner & Laurence Capron, 2018. "Post-merger integration," Journal of Organization Design, Springer;Organizational Design Community, vol. 7(1), pages 1-20, December.
  • Handle: RePEc:spr:jorgde:v:7:y:2018:i:1:d:10.1186_s41469-018-0027-4
    DOI: 10.1186/s41469-018-0027-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s41469-018-0027-4
    File Function: Abstract
    Download Restriction: no

    File URL: https://libkey.io/10.1186/s41469-018-0027-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Maurizio Zollo & Harbir Singh, 2004. "Deliberate learning in corporate acquisitions: post‐acquisition strategies and integration capability in U.S. bank mergers," Strategic Management Journal, Wiley Blackwell, vol. 25(13), pages 1233-1256, December.
    2. Annette L. Ranft & Michael D. Lord, 2002. "Acquiring New Technologies and Capabilities: A Grounded Model of Acquisition Implementation," Organization Science, INFORMS, vol. 13(4), pages 420-441, August.
    3. Koen H. Heimeriks & Mario Schijven & Stephen Gates, 2012. "Manifestations of Higher-Order Routines: The Underlying Mechanisms of Deliberate Learning in the Context of Postacquisition Integration," Post-Print hal-00859930, HAL.
    4. Christopher B. Bingham & Koen H. Heimeriks & Mario Schijven & Stephen Gates, 2015. "Concurrent learning: How firms develop multiple dynamic capabilities in parallel," Strategic Management Journal, Wiley Blackwell, vol. 36(12), pages 1802-1825, December.
    5. Pierre Dussauge & Laurence Capron & Will Mitchell, 1998. "Resource redeployment following horizontal acquisitions in Europe and North America, 1988-1992," Post-Print hal-00464384, HAL.
    6. Laurence Capron & Will Mitchell & Anand Swaminathan, 2001. "Asset divestiture following horizontal acquisitions: a dynamic view," Strategic Management Journal, Wiley Blackwell, vol. 22(9), pages 817-844, September.
    7. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    8. Olivier Bertrand & Laurence Capron, 2015. "Productivity enhancement at home via cross-border acquisitions: The roles of learning and contemporaneous domestic investments," Strategic Management Journal, Wiley Blackwell, vol. 36(5), pages 640-658, May.
    9. Samina Karim, 2009. "Business Unit Reorganization and Innovation in New Product Markets," Management Science, INFORMS, vol. 55(7), pages 1237-1254, July.
    10. Samina Karim & Laurence Capron, 2016. "Reconfiguration: Adding, redeploying, recombining and divesting resources and business units," Strategic Management Journal, Wiley Blackwell, vol. 37(13), pages 54-62, December.
    11. Christopher B. Bingham & Koen H. Heimeriks & Mario Schijven & Stephen Gates, 2015. "Concurrent learning: How firms develop multiple dynamic capabilities in parallel," Post-Print hal-01252834, HAL.
    12. Ranjani A. Krishnan & Satish Joshi & Hema Krishnan, 2004. "The influence of mergers on firms' product‐mix strategies," Strategic Management Journal, Wiley Blackwell, vol. 25(6), pages 587-611, June.
    13. Roberto A. Weber & Colin F. Camerer, 2003. "Cultural Conflict and Merger Failure: An Experimental Approach," Management Science, INFORMS, vol. 49(4), pages 400-415, April.
    14. Anna Nadolska & Harry G. Barkema, 2014. "Good learners: How top management teams affect the success and frequency of acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 35(10), pages 1483-1507, October.
    15. Gautam Ahuja & Riitta Katila, 2001. "Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 197-220, March.
    16. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    17. Victor Manuel Bennett & Emilie R. Feldman, 2017. "Make Room! Make Room! A Note on Sequential Spinoffs and Acquisitions," Strategy Science, INFORMS, vol. 2(2), pages 100-110, June.
    18. Laurence Capron & Will Mitchell, 2009. "Selection Capability: How Capability Gaps and Internal Social Frictions Affect Internal and External Strategic Renewal," Organization Science, INFORMS, vol. 20(2), pages 294-312, April.
    19. Phanish Puranam & Kannan Srikanth, 2007. "What they know vs. what they do: how acquirers leverage technology acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 28(8), pages 805-825, August.
    20. Henrik Bresman & Julian Birkinshaw & Robert Nobel, 1999. "Knowledge Transfer in International Acquisitions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(3), pages 439-462, September.
    21. Phanish Puranam & Harbir Singh & Saikat Chaudhuri, 2009. "Integrating Acquired Capabilities: When Structural Integration Is (Un)necessary," Organization Science, INFORMS, vol. 20(2), pages 313-328, April.
    22. Srikanth Paruchuri & Atul Nerkar & Donald C. Hambrick, 2006. "Acquisition Integration and Productivity Losses in the Technical Core: Disruption of Inventors in Acquired Companies," Organization Science, INFORMS, vol. 17(5), pages 545-562, October.
    23. Frank T. Rothaermel & Maria Tereza Alexandre, 2009. "Ambidexterity in Technology Sourcing: The Moderating Role of Absorptive Capacity," Organization Science, INFORMS, vol. 20(4), pages 759-780, August.
    24. Melissa E. Graebner, 2004. "Momentum and serendipity: how acquired leaders create value in the integration of technology firms," Strategic Management Journal, Wiley Blackwell, vol. 25(8‐9), pages 751-777, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christoph Grimpe & Katrin Hussinger & Wolfgang Sofka, 2023. "Reaching beyond the acquirer-Target Dyad in M&A – Linkages to External knowledge sources and target firm valuation," DEM Discussion Paper Series 23-01, Department of Economics at the University of Luxembourg.
    2. Ostapchuk, Igor & Gagalyuk, Taras & Curtiss, Jarmila, 2021. "Post-acquisition integration and growth of farms: The case of Ukrainian agroholdings," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(4), pages 615-636.
    3. Campagnolo, Diego & Vincenti, Giampiero, 2022. "Cross-border M&As: The impact of cultural friction and CEO change on the performance of acquired companies," Journal of International Management, Elsevier, vol. 28(4).
    4. Ostapchuk, Igor & Gagalyuk, Taras & Curtiss, Jarmila, 2021. "Post-acquisition integration and growth of farms: the case of Ukrainian agroholdings," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(4), April.
    5. John Joseph, 2018. "Evolution of the Journal and the Field of Organization Design," Journal of Organization Design, Springer;Organizational Design Community, vol. 7(1), pages 1-5, December.
    6. Joseph Madara & Peter Mwaura & David Gichuhi, 2021. "Influence of post-merger restructuring on organizational development: A case of Stanbic Bank Kenya Limited," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(7), pages 363-369, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sears, Joshua B. & Hitt, Michael A., 2023. "Post-acquisition integrative invention and differences in the quality of target and acquirer technological capabilities," Journal of Business Research, Elsevier, vol. 156(C).
    2. Aseem Kaul & Brian Wu, 2016. "A capabilities-based perspective on target selection in acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1220-1239, July.
    3. Sears, Joshua B., 2018. "Post-acquisition integrative versus independent innovation: A story of dueling success factors," Research Policy, Elsevier, vol. 47(9), pages 1688-1699.
    4. Maria Chiara Di Guardo & Kathryn Rudie Harrigan & Elona Marku, 2019. "M&A and diversification strategies: what effect on quality of inventive activity?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 669-692, September.
    5. Philipp Meyer‐Doyle & Sunkee Lee & Constance E. Helfat, 2019. "Disentangling the microfoundations of acquisition behavior and performance," Strategic Management Journal, Wiley Blackwell, vol. 40(11), pages 1733-1756, November.
    6. Colman, Helene Loe, 2020. "Facilitating integration and maintaining autonomy: The role of managerial action and interaction in post-acquisition cabability transfer," Journal of Business Research, Elsevier, vol. 109(C), pages 148-160.
    7. Schriber, Svante & Degischer, Daniel, 2020. "Disentangling acquisition experience: A multilevel analysis and future research agenda," Scandinavian Journal of Management, Elsevier, vol. 36(2).
    8. Phanish Puranam & Harbir Singh & Saikat Chaudhuri, 2009. "Integrating Acquired Capabilities: When Structural Integration Is (Un)necessary," Organization Science, INFORMS, vol. 20(2), pages 313-328, April.
    9. David Benson & Rosemarie H. Ziedonis, 2009. "Corporate Venture Capital as a Window on New Technologies: Implications for the Performance of Corporate Investors When Acquiring Startups," Organization Science, INFORMS, vol. 20(2), pages 329-351, April.
    10. Feiqiong Chen & Yin Wang, 2014. "Integration risk in cross-border M&A based on internal and external resource: empirical evidence from China," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(1), pages 281-295, January.
    11. Xiao, Jing, 2018. "Post-acquisition dynamics of technology start-ups: drawing the temporal boundaries of post-acquisition restructuring process," Papers in Innovation Studies 2018/12, Lund University, CIRCLE - Centre for Innovation Research.
    12. Colombo, Massimo G. & Rabbiosi, Larissa, 2014. "Technological similarity, post-acquisition R&D reorganization, and innovation performance in horizontal acquisitions," Research Policy, Elsevier, vol. 43(6), pages 1039-1054.
    13. Tamar Almor & Shlomo Y. Tarba & Avital Margalit, 2014. "Maturing, Technology-Based, Born-Global Companies: Surviving Through Mergers and Acquisitions," Management International Review, Springer, vol. 54(4), pages 421-444, August.
    14. Li, Zhengyu, 2016. "Essays on knowledge sourcing and technological capability : A knowledge structure perspective," Other publications TiSEM b8ff31fc-c57b-4bc3-b5a4-0, Tilburg University, School of Economics and Management.
    15. Aghasi, Keivan & Colombo, Massimo G. & Rossi-Lamastra, Cristina, 2017. "Acquisitions of small high-tech firms as a mechanism for external knowledge sourcing: The integration-autonomy dilemma," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 334-346.
    16. Weiyi Ng & Toby E. Stuart, 2022. "Acquired employees versus hired employees: Retained or turned over?," Strategic Management Journal, Wiley Blackwell, vol. 43(5), pages 1025-1045, May.
    17. Keivan Aghasi & Massimo G. Colombo & Cristina Rossi‐Lamastra, 2022. "Post‐Acquisition Retention of Target Founder‐CEOs: Looking Beneath the Surface," Journal of Management Studies, Wiley Blackwell, vol. 59(4), pages 958-997, June.
    18. Neda Barqawi & Lars Mathiassen & Kamran Syed & Saloni Firasta Vastani, 2016. "Balancing Coordination And Autonomy During Post-Acquisition Within A High-Tech Firm," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-32, April.
    19. Bauer, Florian & King, David & Matzler, Kurt, 2016. "Speed of acquisition integration: Separating the role of human and task integration," Scandinavian Journal of Management, Elsevier, vol. 32(3), pages 150-165.
    20. Strobl, Andreas & Bauer, Florian & Matzler, Kurt, 2020. "The impact of industry-wide and target market environmental hostility on entrepreneurial leadership in mergers and acquisitions," Journal of World Business, Elsevier, vol. 55(2).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jorgde:v:7:y:2018:i:1:d:10.1186_s41469-018-0027-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.