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Institutions and Organizational Socialization: Integrating Employees in Cross-Border Mergers and Acquisitions

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  • Aguilera, Ruth V.

    (U of Illinois at Urbana-Champaign)

  • Dencker, John C.

    (U of Illinois at Urbana-Champaign)

  • Yalabik, Zeynep Y.

    (U of Illinois at Urbana-Champaign)

Abstract

There is a consensus within the Merger and Acquisition (M&A) literature that acquisitions fail during the integration phase, in large part due to neglect of social factors such as differences in rules, norms, and values across organizations. Thus, a crucial part of successful integration is whether firms can socialize employees effectively into the newly merged entity so that they learn accepted ways of behaving in that organization. This effect is exacerbated for cross-border M&As. Yet, there is little theory and practical advice on how to successfully manage post-M&A integration. We draw on institutional and socialization theories to develop a framework that identifies the most salient institutions involved in the socialization of employees during the post-acquisition integration process and apply this model to the international dimension. We conclude by presenting managerial implications of our model and suggestions for future research.

Suggested Citation

  • Aguilera, Ruth V. & Dencker, John C. & Yalabik, Zeynep Y., 2006. "Institutions and Organizational Socialization: Integrating Employees in Cross-Border Mergers and Acquisitions," Working Papers 06-0112, University of Illinois at Urbana-Champaign, College of Business.
    • Handle: RePEc:ecl:illbus:06-0112
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    References listed on IDEAS

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    Cited by:

    1. M. Sarmento & M. I. Pedro & Euridiney Pinto, 2016. "Integration and Socialization of New Employees in the Bank Sector," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 6(2), pages 1098-1098.

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