Kauppatieteellinen tiedekunta, 2014
Dr. Adam Smale
Johtaminen ja organisaatiot
Master's Degree Programme in International Business
International mergers and acquisitions (IM&As) have attracted managers throughout the whole history. Despite their numerous disadvantages they are still considered to be a very popular strategy for international expansion. Unfortunately, nowadays scholars mostly focus on financial aspects of cross-border M&As completely neglecting human resource issues, meanwhile employee reaction to the M&A deal significantly affects its outcome. Moreover, successful integration of working staff of both companies results in a smooth flow of the whole M&A process.
Present study addresses this under-researched aspect of M&A about independent human integration process through two main research questions. The first research question looks at the influence of human integration by national and organizational cultural differences. The second research question aims to identify the impact of managerial practices on human resource integration.
The empirical study was conducted through qualitative research methods via an in depth-case study. Data was collected via semi-structured Skype interviews. Interviews were conducted among two representatives of the acquired company and eight representatives of the acquiring company on both middle- and top-management levels.
Results of the study showed that national and organizational cultural differences have negative impact on human integration in IM&As. Conclusions were drawn based on high level of stress, anxiety, employee turnover and resistance. Furthermore, presence of merger syndrome and social identity categorization affected by cultural differences proved negative attitude of the target company employees towards the M&A deal. Additionally, the impact of the company status and personal culture was identified as significant factors influencing human integration. Finally, managerial practices seemed to be half-implemented resulting in a negative outcome of human integration process, meanwhile the situation with a complete set of necessary managerial implications could have provided a complete opposite result.
Human Integration, National Cultural Differences, Organizational Cultural Differences, Cross-Border Mergers and Acquisitions