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The purpose of this research study was to measure and understand if there was a change in the psychological contract post-acquisition and if so, did this change have a positive, negative or no effect on employee performance. Previous research and literature has suggested that identity was a critical measure of post-acquisition success (2011, p. 26; Weber&Drori, 2011, p. 76) leaving employee performance unmeasured. Rouzies (2011) further suggested that a merger or acquisition can lead to a drop in psychological attachment, identification and commitment to the acquired organisation (2011, p. 25). In addition, Chambers (2008) also made mention of personnel and culture integration being underestimated (p. 16). Therefore, this research has measured psychological contract (identity, culture and communication) in terms of employee performance (potential turnover, job satisfaction and productivity) in the context of post-acquisition integration.The results showed that changes in the psychological contract affect employee performance positively. Equally, if not more, important is maintaining the psychological contract in the post-acquisition integration process and thereby avoiding a drop in employee and acquisition performance.Identity and culture are strong influences of employee performance. The data collected suggested that identity positively impacts employee performance. More specifically, there was a slight positive impact on potential turnover and a more positive impact on job satisfaction and productivity. Culture also positively impacted employee performance. When measured against potential turnover, this impact was slightly positive while job satisfaction and productivity were more positively impacted.Communication was found to be important in reducing potential turnover. From data collected, communication does not impact job satisfaction and productivity. However, the data suggests that communication was adequately handled in the post-acquisition integration process.Recommendations were made dealing with principles to be considered preacquisition, on the importance of minimising disruption and maintaining continuity during post-acquisition. Based on the findings in this research, the psychological contract needs to be maintained in terms of identity, culture and communication. This will in turn ensure that employee performance is maintained post-acquisition. This implies that in addition to financial due-diligence being performed prior to a merger or acquisition, organisations need to be aware of employees’ feelings and attitudes towards the impending change.Future research may look at measuring psychological contract and employee performance in post-acquisition integration across different industries and countries or the same variables could also be measured pre-acquisition. Alternatively, additional variables such as extra-role behaviour and affective commitment could be added to the assessment tool to measure employee performance more closely. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

This report highlights the complexity of engaging in a post-acquisition integration process of a relatively large knowledge-intensive firm. Findings from a case study is analyzed in relation to previous theory, resulting in four propositions aiming at creating a foundation for further theory development, as well as increased understanding among practitioners in relation to the emphasized problem. It is argued by the authors that increased relative acquisition size of knowledge-intensive firms will: 1) increase demand for a centralized organizational structure, 2) decrease benefits of introducing a new top management, 3) decrease communicative attention towards lower levels, and 4) decrease attention towards subcultures. These factors will ultimately increase the risk for integration failure.

In 2014, Volkswagen (VW) became the only owner of Scania, acquiring full-control of the company (Pohl, 2017). Scania is the only truck manufacturer that has been able through long period of time to show black figures constantly. VW and Scania have two separate and well- established MACS, namely budgetary system at VW, while lean accounting and rolling forecast at Scania. After the acquisition, the two MACS have presumably been integrated to some extent, in one way or another. The differences in MACS can create barriers for integration and tension may arise. The broad topic of the thesis is management accounting and control challenges and consequences in post-acquisition phase. In previous research, scholars have identified a number of factors that are critical to facilitate the integration of MACS, among other things, the similarities regarding, corporate culture, style of management, and working methods. Otherwise, the subsidiary may choose to adopt one or more containment mechanisms to ease the tension between the two MACS. Our result is in line with Tillema and Van der Steen (2015) who have identified three mechanisms to deal with the tension, namely, colonizing, compromising, decoupling.

The importance of the post acquisition integration in order to realize the anticipated value from an acquisition has been researched from various angles. Scholars have identified several distinct integration strategies that acquiring firms implement, that differs to what extent the acquired firm is integrated. This paper examines why firms choose a specific integration strategy, and how the strategy is implemented. A multiple case study was conducted with three Swedish companies in different industries, all with technology as a common denominator. Through an inductive approach, the empirical data was coded and analyzed. With the help of existing literature, the analysis showed that the dimension risk aversion can be added to the existing body of literature to explain the choice of integration strategy. The analysis also indicated that an absorbent integration strategy comes with more human resource challenges, however the benefit is a potentially higher value creation.

Les intégrations post-acquisitions up-market de multinationales émergentes (EMNE) dans des économies avancées ont été peu étudiées empiriquement. Cette recherche dresse une typologie des approches mises en œuvre suite à 25 acquisitions en France d’EMNE de 13 pays différents, et analyse les déterminants de leurs choix. L’approche partenariale est majoritairement adoptée, sous diverses modalités dynamiques, mais elle n’est pas systématique. La diversité des types d’intégration révèle l’influence de l’effet du pays d’origine des EMNE sur leurs décisions stratégiques. Cet effet est exploré sous l’angle des héritages administratifs des EMNE, précisément leurs imaginaires stratégiques et politiques qui influencent leur représentation des opportunités du contexte géo-économique global. / Few studies empirically addressed emerging multinationals (EMNE) integrations following up-market acquisitions in advanced economies countries. This research establishes a typology of the approaches adopted after 25 acquisitions in France by EMNE from 13 different countries, and analyses the antecedents of their choices. Partnering approach is predominantly adopted, with several dynamic forms, but is not systematic. The diversity of integration types reveals the significance of EMNE country-of-origin effect on their strategic decisions. This effect is investigated through EMNE administrative heritages, precisely their strategic and political imagination which influence their representation of the global geoeconomics context.

Post-crisis market realities in Greece are expected to lead to increased M&A activity in the coming years, little evidence is provided in the academic literature on Greek M&A post-acquisition performance and its driving factors. The overall aim of this thesis is to complement and enhance the existing M&A literature by examining the impact of two post-acquisition actions, of asset divestiture and resource redeployment on the long-term performance of Greek M&A deals over the period 2005-2009. The conceptual framework of this thesis draws on the strategic management perspective. Using the cost efficiencies argument, the thesis examines how cost savings, due to asset divestiture affect the post-acquisition performance of both the target and the acquiring firm. In addition, by drawing on the resource-based view of the firm and the dynamic capabilities perspective, the thesis explores the effects of post-acquisition resource redeployment from acquirers to targets and vice versa, on revenue-enhancing capabilities. The findings revealed that the divestiture of the acquirers’ assets does not reduce costs. In addition, the importance of revenue-based synergies was shown, through the mediating variables of market coverage and innovation capabilities. Finally, acquirer’s resource redeployment has a positive and significant effect on cost savings and the same holds true for the resource redeployment to the target. These results indicate that resource redeployment contributes in achieving higher cost efficiency. The originality of this study is that it tries to obtain new insights on the subject of the post-acquisition performance using arguments from the cost-based and resourcebased synergies, the resource-based view (RBV) of the firm and the dynamic capabilities perspective. In addition, this is a large-scale empirical study conducted in Greece drawing on detailed primary data on a high range of post-acquisition actions followed by the managers of the acquiring companies rather than secondary data.

The increasing global challenges, such as natural disasters, poverty and many others, pose new threats to societies and businesses. Therefore, companies increase their engagement in Corporate Sustainability (CS), which connects social, environmental and economic responsibilities. Through this approach, CS aims at overcoming environmental and social constraints in a business context to increase competitiveness in today’s fast-changing world. This fast pace, with which the business environment changes, is related to external influences, such as the above-mentioned climate change, and to fundamental structural developments. One of those is the increasing number of emerging-market companies (EMNCs) that internationalize rapidly through cross-border M&A deals, also into developed markets. Since both trends, the increase in CS engagement and the growing international M&A activity of EMNCs, gain in practical and academic importance, we conducted our study under the following research question. How is CS integrated on a strategic level after a cross-border acquisition by an EMNC? The theoretical angle from which we approached the topic aligns with the resource-based view, including the natural-resource-based view, and a stakeholder perspective. When reviewing the literature regarding CS, it became clear that substantial outcomes are still lacking despite an increasing commitment to CS. This difficulty can be linked to the variety of interpretations regarding the conception of CS and the resulting confusion among implicated parties. The review of M&A literature, with a special focus on EMNCs, revealed that these companies deploy a unique approach, which is characterized by the soft post-M&A integration of the target to allow organizational learning within both businesses. Therefore, our empirical research aimed at exploring how the strategic CS of both companies, the target and the parent, influence each other and thus, develop towards a common CS strategy. The longitudinal single case study we selected, allowed us to investigate this research proposal. Through the collection and analysis of documentary data enriched by semi-structured interviews, our study revealed the following. The exchange of knowledge and CS-related communication represented the basis for the integration of strategic CS as it nurtures organizational learning. Consequently, the CS strategies of both companies increased in maturity, which means that their sophistication evolved. In addition, we also found that the target developed towards a more permissive sustainability to align with its parent company’s CS strategy. Our main study contributions relate to an enhancement of the theoretical knowledge in the related fields. Besides this, we also identified critical practical issues, such as the importance of establishing a common conception of CS to ensure a successful CS integration on a strategic level.

<p>Business has seen tremendous growth through internationalization over the last several decades.  As  one  of  the  strategies  for  companies  to  internationalize,  acquisition  has since then been a well-studied subject. Various steps have to be gone through in order to  acquire  a  company.  Afterwards,  companies  need  to  take  different  measures  to ensure  the  success  of  the  acquisition.  Culture  is  usually  considered  as  the  most important  aspect  which  determines  post-acquisition  success.  The  purpose  of  this master dissertation is to thus investigate company’s internationalization via acquisition regarding    the    pre-acquisition    decision-making    and    post-acquisition    cultural management. The  theoretical  framework  consists  of  literature  of  pre-acquisition  decision-making process and post-acquisition culture management. These theories are put together in an analytical  model  where  possible  connections  are  intended  to  achieve.  It  will  also  be used as a foundation in gathering and analyzing the empirical data.   In  a  qualitative  approach,  the  empirical  data  was  gathered  through  semi-structured interview with the president of Getinge International Group. These findings were also complemented with secondary data such as corporate websites, documents and various scientific articles. The findings of the study show that planning, evaluating, negotiating, making the deal and    integration    are    the    five    essential    steps    concerning    the    process    of internationalization  through  acquisition.  The  authors  find  out  that  identifying  of acquisition  candidates  is  not  necessarily  a  part  of  pre-acquisition  as  the  theory  may suggest.  The  distinction  between  bolt-on  and  platform  acquisition  is  of  critical importance to determine the different criteria and procedure certain company is going to take. This proves to be much more practical, where theoretical support has not been fully established. Both national and corporate cultures are of crucial importance for the success of company’s post-acquisition culture management. According to the finding of this research, two factors seem to link pre and post acquisition process; one is the planning of how future organization is managed; the other is the appropriate choice of managing director.</p>

In business today efforts are being taken in order to grow, while some firms slowly grow organically others decide to perform a merger or an acquisition (M&amp;A). Firms performing M&amp;As have a high failure rate and many times this is caused by a poorly handled post-acquisition process. Small and medium-sized enterprises (SMEs) have, according to researchers, not the same ambition to grow compared to large firms, and the research area concerning the post-acquisition process is often from a large firm perspective. However, SMEs do perform M&amp;As as well and therefore it is in our interest to investigate the post-acquisition process in SMEs and see how the post-acquisition process is performed in these firms. The purpose of this thesis is to investigate the post-acquisition process in SMEs, this to highlight the SME characteristics in a post-acquisition process. Our methodological approach in this study is hermeneutic. To collect empirical information we performed an interview study, where semi-structured interviews with the managing director or a member of the management team in four SMEs have been conducted. A model for analyzing has been constructed, which helped us to process the empirical information from a hermeneutic perspective. The reason why the studied firms performed a M&amp;A was to get access to a new customer base and to strengthen their market positions. The focus in the post-acquisition process has been on external value creation since the customers are highly valuated, and this can be related to the uncertain financial and environmental situation that SMEs experience. All firms in the study have chosen a high level of integration, though the planning in the firms has not been that extensive as the post-acquisition literature suggests. Further, several elements within the human resource area have been neglected in their planning, despite this three of the firms experienced a limited amount of resistance to change and this ought to be related to their SME characteristics. The employees are willing to follow the direction stated by the managing director, who has a high influence on the organization’s culture. In the firms we studied the centralization of power is one important element and the acquiring firms have preferred a unicultural organization, and in most cases a congruence con-cerning culture have occurred.