Skip to main content

The Notion of Process in Merger and Acquisition Research

  • Chapter
  • First Online:
Mergers and Acquisitions
  • 1309 Accesses

Abstract

In this chapter, we dig into acquisition process(es). A process perspective has been a turning point in the evolution of the M&A field; it has dramatically influenced the way we conceive, research, and manage acquisitions. Our analysis signals the importance of replacing the simplistic and reductionist view of acquisition as a unitary process and with the one that recognizes the multitude of processes that make up the whole acquisition process and places the acquisition within the broader domain of corporate restructuring activities. Acknowledging the single fragments of the process enables a better grasp of the complexity inherent in these deals. Single (sub)processes do overlap one another, have different time horizons, and compete for resources. Acquisition scholars and practitioners need to be cognizant of these dualisms as they influence research and practice.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 119.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 159.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 159.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Achtenhagen, L., Brunninge, O., & Melin, L. (2017). Patterns of dynamic growth in medium-sized companies: Beyond the dichotomy of organic versus acquired growth. Long Range Planning,50(4), 457–471.

    Article  Google Scholar 

  • Aglietta, M. (2000). Shareholder value and corporate governance: Some tricky questions. Economy and Society,29, 146–159.

    Article  Google Scholar 

  • Anand, J., & Lee, Y. (2016). Acquisition strategy. In M. Augier & D. Teece (Eds.), The Palgrave encyclopedia of strategic management (pp. 1–6). Basingstoke, UK: Palgrave Macmillan.

    Google Scholar 

  • Anderson, H., Havila, V., & Nilsson, F. (Eds.). (2013). Mergers and acquisitions. The critical role of stakeholders. New York and Oxon: Routledge.

    Google Scholar 

  • Barkema, H. G., Bell, J. H., & Pennings, J. M. (1996). Foreign entry, cultural barriers, and learning. Strategic Management Journal,17(2), 151–166.

    Article  Google Scholar 

  • Barkema, H. G., & Schijven, M. (2008a). Toward unlocking the full potential of acquisitions: The role of organizational restructuring. Academy of Management Journal,51(4), 696–722.

    Google Scholar 

  • Barkema, H. G., & Schijven, M. (2008b). How do firms learn to make acquisitions? A review of past research and an agenda for the future. Journal of Management,34(3), 594–634.

    Article  Google Scholar 

  • Barney, J. B. (1988). Returns to bidding firms in mergers and acquisitions: Reconsidering the relatedness hypothesis. Strategic Management Journal,9(S1), 71–78.

    Article  Google Scholar 

  • Bartunek, J. M., Rynes, S. L., & Ireland, R. D. (2006). What makes management research interesting, and why does it matter? Academy of Management Journal,49(1), 9–15.

    Article  Google Scholar 

  • Bertrand, O., & Capron, L. (2015). Productivity enhancement at home via cross-border acquisitions: The roles of learning and contemporaneous domestic investments. Strategic Management Journal,36(5), 640–658.

    Article  Google Scholar 

  • Bettinazzi, E. L., & Zollo, M. (2017). Stakeholder orientation and acquisition performance. Strategic Management Journal,38(12), 2465–2485.

    Article  Google Scholar 

  • Birkinshaw, J., Bresman, H., & HÃ¥kanson, L. (2000). Managing the post-acquisition integration process: How the human integration and task integration processes interact to foster value creation. Journal of Management Studies,37(3), 395–425.

    Article  Google Scholar 

  • Borglund, T. (2013). The growing importance of corporate social responsibility in mergers and acquisitions. In H. Anderson, V. Havila, & Nilsson, F. (Eds.), Mergers and acquisitions. The critical role of stakeholders (pp. 17–39). New York and Oxon: Routledge.

    Google Scholar 

  • Bower, J. L. (2001, March). Not all M&As are alike—And that matters. Harvard Business Review, 79, 93–101.

    Google Scholar 

  • Buono, A. F., & Bowditch, J. L. (1989). The human side of mergers and acquisitions. San Francisco, CA: Jossey-Bass.

    Google Scholar 

  • Buono, A. F., Bowditch, J. L., & Lewis III, J. W. (1985). When cultures collide: The anatomy of a merger. Human Relations,38(5), 477–500.

    Article  Google Scholar 

  • Capron, L., & Mitchell, W. (2012). Build, borrow, or buy: Solving the growth dilemma. Boston: Harvard Business Press.

    Google Scholar 

  • Cartwright, S., & Cooper, C. L. (1993). The psychological impact of merger and acquisition on the individual: A study of building society managers. Human Relations,46(3), 327–347.

    Article  Google Scholar 

  • Clark, S. M., Gioia, D. A., Ketchen, D. J., Jr., & Thomas, J. B. (2010). Transitional identity as a facilitator of organizational identity change during a merger. Administrative Science Quarterly,55(3), 397–438.

    Article  Google Scholar 

  • Côté, L., Langley, A., & Pasquero, J. (1999). Acquisition strategy and dominant logic in an engineering firm. Journal of Management Studies,36(7), 919–952.

    Article  Google Scholar 

  • Datta, D. K. (1991). Organizational fit and acquisition performance: Effects of post-acquisition integration. Strategic Management Journal,12(4), 281–297.

    Article  Google Scholar 

  • Dawson, P. (2003). Reshaping change: A processual perspective. London: Routledge.

    Book  Google Scholar 

  • De Rond, M., & Miller, A. N. (2005). Publish or perish: Bane or boon of academic life? Journal of Management Inquiry,14(4), 321–329.

    Article  Google Scholar 

  • Feldman, M. S., Bell, J., & Berger, M. T. (2003). Gaining access. A practical and theoretical guide for qualitative research. Walnut Creek: Altamira Press.

    Google Scholar 

  • Gherardi, S., & Strati, A. (1988). The temporal dimension in organizational studies. Organization Studies, 9(2), 149–164.

    Google Scholar 

  • Gomes, E., Angwin, D. N., Weber, Y., & Yedidia Tarba, S. (2013). Critical success factors through the mergers and acquisitions process: Revealing pre-and post-M&A connections for improved performance. Thunderbird International Business Review,55(1), 13–35.

    Article  Google Scholar 

  • Graebner, M. E. (2004). Momentum and serendipity: How acquired leaders create value in the integration of technology firms. Strategic Management Journal,25(8–9), 751–777.

    Article  Google Scholar 

  • Graves, D. (1981). Individual reactions to a merger of two small firms of brokers in the re-insurance industry: A total population survey. Journal of Management Studies,18(1), 89–113.

    Article  Google Scholar 

  • Guerrero, S. (2008). Changes in employees’ attitudes at work following an acquisition: a comparative study by acquisition type. Human Resource Management Journal,18(3), 216–236.

    Article  Google Scholar 

  • Gutknecht, J. E., & Keys, J. B. (1993). Mergers, acquisitions and takeovers: Maintaining morale of survivors and protecting employees. Academy of Management Perspectives,7(3), 26–36.

    Article  Google Scholar 

  • Habeck, M., Kröger, F., & Träm, M. (2000). After the merger. Upper Saddle River: FT Press.

    Google Scholar 

  • Haleblian, J., & Finkelstein, S. (1999). The influence of organizational acquisition experience on acquisition performance: A behavioral learning perspective. Administrative Science Quarterly,44(1), 29–56.

    Article  Google Scholar 

  • Halinen, A., Salmi, A., & Havila, V. (1999). From dyadic change to changing business networks: An analytical framework. Journal of Management Studies,36(6), 779–794.

    Article  Google Scholar 

  • Haspeslagh, P. C., & Jemison, D. B. (1991). Managing acquisitions: Creating value through corporate renewal (Vol. 416). New York: Free Press.

    Google Scholar 

  • Hayward, M. L. (2002). When do firms learn from their acquisition experience? Evidence from 1990 to 1995. Strategic Management Journal,23(1), 21–39.

    Article  Google Scholar 

  • Hitt, M., Harrison, J., Ireland, R. D., & Best, A. (1998). Attributes of successful and unsuccessful acquisitions of US firms. British Journal of Management,9(2), 91–114.

    Article  Google Scholar 

  • Hornby, A. S. (1974). Oxford advanced learner’s dictionary of current English. Oxford: Oxford University Press.

    Google Scholar 

  • Jemison, D. B., & Sitkin, S. B. (1986). Corporate acquisitions: A process perspective. Academy of Management Review,11(1), 145–163.

    Article  Google Scholar 

  • Kim, J. Y., & Finkelstein, S. (2009). The effects of strategic and market complementarity on acquisition performance: Evidence from the US commercial banking industry, 1989–2001. Strategic Management Journal,30(6), 617–646.

    Article  Google Scholar 

  • King, D. R., Dalton, D. R., Daily, C. M., & Covin, J. G. (2004). Meta-analyses of post-acquisition performance: Indications of unidentified moderators. Strategic Management Journal,25(2), 187–200.

    Article  Google Scholar 

  • Kusewitt, J. B., Jr. (1985). An exploratory study of strategic acquisition factors relating to performance. Strategic Management Journal,6(2), 151–169.

    Article  Google Scholar 

  • Laamanen, T., & Keil, T. (2008). Performance of serial acquirers: Toward an acquisition program perspective. Strategic Management Journal,29(6), 663–672.

    Article  Google Scholar 

  • Levinson, H. (1970, March–April). A psychologist diagnoses merger failures. Harvard Business Review, 48, 139–147.

    Google Scholar 

  • Lohrum, C. (1996). Post-acquisition integration: Towards an understanding of employee reactions (Doctoral dissertation). Research Reports 65, Swedish School of Economics and Business Administration, Helsinki, Finland.

    Google Scholar 

  • Lubatkin, M. (1987). Merger strategies and stockholder value. Strategic Management Journal,8(1), 39–53.

    Article  Google Scholar 

  • Lubatkin, M., & Shrieves, R. E. (1986). Towards reconciliation of market performance measures to strategic management research. Academy of Management Review,11(3), 497–512.

    Article  Google Scholar 

  • Makri, M., Hitt, M. A., & Lane, P. J. (2010). Complementary technologies, knowledge relatedness, and invention outcomes in high technology mergers and acquisitions. Strategic Management Journal,31(6), 602–628.

    Google Scholar 

  • Marks, M. L. (1982). Merging human resources: A review of current research. Mergers & Acquisitions,17, 38–44.

    Google Scholar 

  • Meglio, O. (2015). The acquisition performance game. In A. Risberg, D. R. King, & O. Meglio (Eds.), The Routledge companion to mergers and acquisitions (pp. 163–176). London: Routledge.

    Google Scholar 

  • Meglio, O., King, D. R., & Risberg, A. (2015). Improving acquisition outcomes with contextual ambidexterity. Human Resource Management,54(S1), s29–s43.

    Article  Google Scholar 

  • Meglio, O., King, D. R., & Risberg, A. (2017). Speed in acquisitions: A managerial framework. Business Horizons,60(3), 415–425.

    Article  Google Scholar 

  • Meglio, O., & Park, K. (2019). Strategic decisions and sustainability choices. Mergers and acquisitions and corporate social responsibility from a global perspective. Cham, Switzerland: Springer International Publishing.

    Google Scholar 

  • Meglio, O., & Risberg, A. (2010). Mergers and acquisitions—Time for a methodological rejuvenation of the field? Scandinavian Journal of Management,26(1), 87–95.

    Article  Google Scholar 

  • Meglio, O., & Risberg, A. (2011). The (mis)measurement of M&A performance—A systematic narrative literature review. Scandinavian Journal of Management,27(4), 418–433.

    Article  Google Scholar 

  • Merriam Webster. https://www.merriam-webster.com/dictionary/dictionary. Accessed October 12, 2019.

  • Mintzberg, H., & Lampel, J. (1999). Reflecting on the strategy process. Sloan Management Review,40, 21–30.

    Google Scholar 

  • Mintzberg, H., & Waters, J. A. (1985). Of strategies, deliberate and emergent. Strategic Management Journal,6(3), 257–272.

    Article  Google Scholar 

  • Nahavandi, A., & Malekzadeh, A. R. (1988). Acculturation in mergers and acquisitions. Academy of Management Review,13(1), 79–90.

    Article  Google Scholar 

  • Nemanich, L. A., & Vera, D. (2009). Transformational leadership and ambidexterity in the context of an acquisition. The Leadership Quarterly,20(1), 19–33.

    Article  Google Scholar 

  • Öberg, C., & Holtström, J. (2006). Are mergers and acquisitions contagious? Journal of Business Research,59(12), 1267–1275.

    Article  Google Scholar 

  • Oler, D. K., Harrison, J. S., & Allen, M. R. (2008). The danger of misinterpreting short-window event study findings in strategic management research: An empirical illustration using horizontal acquisitions. Strategic Organization,6(2), 151–184.

    Article  Google Scholar 

  • Pettigrew, A. M., Woodman, R. W., & Cameron, K. S. (2001). Studying organizational change and development: Challenges for future research. Academy of Management Journal,44(4), 697–713.

    Article  Google Scholar 

  • Phelan, S. E., Ferreira, M., & Salvador, R. (2002). The first twenty years of the Strategic Management Journal. Strategic Management Journal,23(12), 1161–1168.

    Article  Google Scholar 

  • Piekkari, R., Vaara, E., Tienari, J., & Säntti, R. (2005). Integration or disintegration? Human resource implications of a common corporate language decision in a cross-border merger. The International Journal of Human Resource Management,16(3), 330–344.

    Article  Google Scholar 

  • Porrini, P. (2004). Can a previous alliance between an acquirer and a target affect acquisition performance? Journal of Management,30(4), 545–562.

    Article  Google Scholar 

  • Riad, S., & Daellenbach, U. (2019). Varieties of value in mergers and acquisitions: Time for a new research agenda. In Advances in Mergers and Acquisitions (pp. 125–138). Bingley, UK: Emerald Publishing Limited.

    Google Scholar 

  • Risberg, A. (1999). Ambiguity thereafter. An interpretative approach to acquisition. Lund Studies in Economics and Management, 46.

    Google Scholar 

  • Risberg, A. (2003). The merger and acquisition process. Journal of International Business Studies,34(1), 1–34.

    Google Scholar 

  • Seo, M. G., & Hill, N. S. (2005). Understanding the human side of merger and acquisition: An integrative framework. The Journal of Applied Behavioral Science,41(4), 422–443.

    Article  Google Scholar 

  • Shanley, M. T., & Correa, M. E. (1992). Agreement between top management teams and expectations for post-acquisition performance. Strategic Management Journal,13(4), 245–266.

    Article  Google Scholar 

  • Shelton, L. M. (1988). Strategic business fits and corporate acquisition: Empirical evidence. Strategic Management Journal,9(3), 279–287.

    Article  Google Scholar 

  • Shleifer, A., & Vishny, R. W. (1988). Value maximization and the acquisition process. Journal of Economic Perspectives,2(1), 7–20.

    Article  Google Scholar 

  • Sinetar, M. (1981). Mergers, morale and productivity. Personnel Journal,60(11), 863–867.

    Google Scholar 

  • Sudarsanam, S. (1996). Large shareholders, takeovers and target valuation. Journal of Business Finance & Accounting,23(2), 295–314.

    Article  Google Scholar 

  • Trautwein, F. (1990). Merger motives and merger prescriptions. Strategic Management Journal,11(4), 283–295.

    Article  Google Scholar 

  • Uhlenbruck, K., Hitt, M. A., & Semadeni, M. (2006). Market value effects of acquisitions involving Internet firms: A resource-based analysis. Strategic Management Journal,27(10), 899–913.

    Article  Google Scholar 

  • Vaara, E. (2003). Post-acquisition integration as sensemaking: Glimpses of ambiguity, confusion, hypocrisy, and politicization. Journal of Management Studies,40(4), 859–894.

    Article  Google Scholar 

  • Van de Ven, A. H. (1992). Suggestion for studying strategy process: A research note. Strategic Management Journal,13(1), 169–188.

    Google Scholar 

  • Van de Ven, A. H. (2007). Engaged scholarship. A guide for organizational and social research. New York: Oxford University Press.

    Google Scholar 

  • Walkling, R. A., & Long, M. S. (1984). Agency theory, managerial welfare, and takeover bid resistance. The Rand Journal of Economics, 15, 54–68.

    Google Scholar 

  • Walsh, J. P. (1989). Doing a deal: Merger and acquisition negotiations and their impact upon target company top management turnover. Strategic Management Journal,10(4), 307–322.

    Article  Google Scholar 

  • Wicker, A. W. (1985). Getting out of our conceptual ruts: Strategies for expanding conceptual frameworks. American Psychologist,40(10), 1094–1103.

    Article  Google Scholar 

  • Yu, J., Engleman, R. M., & Van de Ven, A. H. (2005). The integration journey: An attention-based view of the merger and acquisition integration process. Organization Studies,26(10), 1501–1528.

    Article  Google Scholar 

  • Zollo, M. (2009). Superstitious learning with rare strategic decisions: Theory and evidence from corporate acquisitions. Organization Science,20(5), 894–908.

    Article  Google Scholar 

  • Zollo, M., & Reuer, J. J. (2010). Experience spillovers across corporate development activities. Organization Science,21(6), 1195–1212.

    Article  Google Scholar 

  • Zollo, M., & Singh, H. (2004). Deliberate learning in corporate acquisitions: Post-acquisition strategies and integration capability in US bank mergers. Strategic Management Journal,25(13), 1233–1256.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Olimpia Meglio .

Rights and permissions

Reprints and permissions

Copyright information

© 2020 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Meglio, O. (2020). The Notion of Process in Merger and Acquisition Research. In: Mergers and Acquisitions. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-40459-8_3

Download citation

Publish with us

Policies and ethics