In this article, the authors identify six theories (anxiety theory, social identity theory, acculturation theory, role conflict theory, job characteristics theory, and organizational justice theory) to explain problems in managing the merger and acquisition (M&A) organizational change process. These theories have implicitly or explicitly formed the basis for the past M&A literature. The authors integrate these theories into one conceptual framework that clearly delineates unique sources of problems that can emerge in different stages of M&A integration, their psychological and behavioral effects on employees, and prescriptions to address the problems. The framework can be used as a guide for M&A integration leaders to systematically plan interventions to smooth the human integration process. It also provides a foundation for future theoretical and empirical M&A integration research.
Adams, J. S. (1965). Inequity in social exchange. In L. Berkowitz (Ed.), Advances in experimental social psychology (Vol. 2, pp. 267-299). San Diego, CA: Academic Press.
2.
Ashforth, B. E., & Mael, F. (1989). Social identity theory and the organization. Academy of Management Review, 14, 20-39.
3.
Ashkenas, R. N., DeMonaco, L. J., & Francis, S. C. (1998). Making the deal real: How GE Capital integrates acquisitions. Harvard Business Review, 76(1), 165-178.
4.
Astrachan, J. H. (1995). Organizational departures: The impact of separation anxiety as studied in a mergers and acquisitions simulation. Journal of Applied Behavioral Science, 31, 31-50.
5.
Bastien, D. T. (1987). Common patterns of behavior and communication in corporate mergers and acquisitions. Human Resource Management, 26, 17-33.
6.
Berry, J. W. (1980). Social and cultural change. In H. C. Triandis & R. W. Brislin (Eds.), Handbook of cross-cultural psychology (Vol. 5, pp. 211-279). Boston: Allyn & Bacon.
7.
Birkinshaw, J., Bresman, H., & Hakanson, 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, 395-425.
8.
Bower, J. L. (2001). Not all M&As are alike—And that matters. Harvard Business Review, 79(3), 92-101.
9.
Brockner, J., Grover, S., Reed, T. F., & Dewitt, R. L. (1992). Layoffs, job security, and survivors’ work effort: Evidence of an inverted-U relationship. Academy of Management Journal, 35, 414-425.
10.
Brooks, M. R., Rosson, P. J., & Gassmann, H. I. (2005). Influences on post-M&A corporate visual identity choices. Corporate Reputation Review, 8, 136-144.
11.
Buono, A. F., & Bowditch, J. L. (1989). The human side of mergers and acquisitions. San Francisco: Jossey-Bass.
12.
Buono, A. F., Bowditch, J. L., & Lewis, J. W. (1985). When cultures collide: The anatomy of a merger. Human Relations, 38, 477-500.
13.
Burlew, L. D., Pederson, J. E., & Bradley, B. (1994). The reaction of managers to the pre-acquisition stage of a corporate merger: A qualitative study. Journal of Career Development, 21, 11-22.
14.
Cameron, K., Freeman, S. J., & Mishra, A. K. (1991). Practices in white-collar downsizing: Managing contradictions. Academy of Management Executive, 5, 57-73.
15.
Cartwright, S., & Cooper, C. L. (1993a). The psychological impact of merger and acquisition on the individual: A study of Building Society managers. Human Relations, 46, 327-347.
16.
Cartwright, S., & Cooper, C. L. (1993b). The role of culture compatibility in successful organizational marriage. Academy of Management Executive, 7, 57-70.
17.
Cartwright, S., & Cooper, C. L. (1996). Managing mergers and acquisitions. Oxford, UK: Utterworth-Heinemann.
18.
Cobb, A. T., Wooten, K. C., & Folger, R. (1995). Justice in the making: Toward understanding the theory and practice of justice in organizational change and development. In W. A. Pasmore & R. W. Woodman (Eds.), Research in organizational change and development (Vol.8, pp.191-228). Greenwich, CT: JAI.
19.
Dailey, R. C., & Kirk, D. J. (1992). Distributive and procedural justice as antecedents of job disaffection and intention to turnover. Human Relations, 45, 305-316.
20.
Datta, D. K. (1991). Organizational fit and acquisition performance: Effects of post-acquisition integration. Strategic Management Journal, 12, 281-297.
21.
DiGeorgio, R. M. (2002). Making mergers and acquisitions work: What we know and don’t know—Part 1. Journal of Change Management, 3, 134-148.
22.
Elsass, P., & Veiga, J. (1994). Acculturation in acquired organizations: A force-field perspective. Human Relations, 47, 431-453.
23.
Feldman, M. L. (1995). Disaster prevention plans after a merger. Merger & Acquisitions, 30(1), 31-36.
24.
Freeman, S. J., & Cameron, K. S. (1993). Organizational downsizing: A convergence and reorientation framework. Organization Science, 4(1), 10-29.
25.
Fried, Y., Tiegs, R. B., Naughton, T. J., & Ashforth, B. E. (1996). Managers’ reactions to a corporate acquisition: A test of an integrative model. Journal of Organizational Behavior, 7, 401-427.
26.
Fugate, M., Kinicki, A. J., & Scheck, C. L. (2002). Coping with an organizational merger over four stages. Personnel Psychology, 55, 905-928.
27.
Fulmer, R. M., & Gilkey, R. (1988). Blending corporate families: Management and organization development in a post-merger environment. Academy of Management Executive, 1, 127-138.
28.
Gaertner, S. L., Mann, J. A., Dovidio, J. F., Murrell, A. J., & Pomare, M. (1990). How does cooperation reduce intergroup bias?Journal of Personality and Social Psychology, 59, 692-704.
29.
Garpin, T. J., & Herndon, M. (2000). The complete guide to mergers and acquisitions: Process tools to support M&A integration at every level. San Francisco: Jossey-Bass.
30.
Gaughan, P. A. (1999). Mergers, acquisitions, and corporate restructurings. New York: John Wiley.
31.
Greenberg, J. (1987). A taxonomy of organizational justice theories. Academy of Management Review, 12, 9-22.
32.
Gutknecht, J. E., & Keys, J. B. (1993). Mergers, acquisitions and takeover: Maintaining morale of survivors and protecting employees. Academy of Management Executive, 7, 26-36.
33.
Hackman, J. R., & Oldham, G. R. (1975). Development of the job characteristic survey. Journal of Applied Psychology, 60, 159-170.
34.
Hammer, M., & Champy, J. (1993). Reengineering the corporation: A manifesto for business revolution. London: Nicholas Brealy.
35.
Harperin, M., & Bell, S. J. (1992). Research guide to corporate acquisitions, mergers, and other restructuring. Westport, CT: Greenwood.
36.
Harrison, C. (1998). Ensuring a smooth combination of benefit plans. Merger & Acquisitions, 32(4), 39-42.
37.
Haunschild, P., Moreland, R., & Murrell, A. (1994). Sources of resistance to mergers between groups. Journal of Applied Social Psychology, 24, 1150-1178.
38.
Hogan, E., & Overmyer-Day, L. (1994). The psychology of mergers and acquisitions. International Review of Industrial and Organizational Psychology, 9, 248-281.
39.
Hogg, M. A., & Terry, D. J. (2000). Social identity and self-categorization processes in organizational contexts. Academy of Management Review, 25, 121-140.
40.
Igbaria, M., & Guimaraes, T. (1993). Antecedents and consequences of job satisfaction among information center employees. Journal of Management Information Systems, 9, 145-174.
41.
Ivancevich, J. M., Schweiger, D. M., & Power, F. R. (1987). Strategies for managing human resources during mergers and acquisitions. Human Resource Planning, 10(1), 19-35.
42.
Katz, D., & Kahn, R. (1978). The social psychology of organizations (2nd ed.). New York: John Wiley.
43.
Kleinman, D. (1988). Witness to a merger. Personnel Journal, 67, 56-69.
44.
Kramer, R. M. (1991). Intergroup relations and organizational dilemmas: The role of categorization processes. In L. L. Cunnings & B. M. Staw (Eds.), Research in organizational behavior (Vol. 13, pp. 191-228). Greenwich, CT: JAI.
45.
Krupar, K. R., & Krupar, J. J. (1988). Consider the people-fit issues during merger. Personnel Journal, 67, 95-98.
46.
Marks, M. L. (1997). Consulting in mergers and acquisitions: Interventions spawned by recent trends. Journal of Organizational Change Management, 10, 267-279.
47.
Marks, M. L. (1999). Adding cultural fit to your diligence checklist. Mergers & Acquisitions, 34(3), 14-20.
48.
Marks, M. L., & Mirvis, P. H. (1985, Summer). Merger syndrome: Stress and uncertainty. Mergers & Acquisitions, 50-55.
49.
Marks, M. L., & Mirvis, P. H. (1992). Rebuilding after the merger: Dealing with “survival sickness.”Organizational Dynamics, 21(2), 18-32.
50.
Marks, M. L., & Mirvis, P. H. (1998). Joining forces. San Francisco: Jossey-Bass.
51.
Marks, M. L., & Mirvis, P. H. (2001). Making mergers and acquisitions work: Strategic and psychological preparation. Academy of Management Executive, 15, 80-94.
52.
Matteson, M. T., & Ivancevich, J. M. (1990). Merger and acquisition stress: Fear and uncertainty at mid-career, Prevention in Human Services, 8(1), 139-158.
53.
McFarlin, D. B., & Sweeney, P. D. (1992). Distributive and procedural justice as predictors of satisfaction with personal and organizational outcomes. Academy of Management Journal, 25, 626-637.
54.
Mirvis, P. H., & Marks, M. L. (1992). The human side of merger planning: Assessing and analyzing fit. Human Resource Planning, 15, 69-92.
55.
Nadler, D. A., & Tushman, M. L. (1989). Organizational frame bending: Principles for managing reorientation. Academy of Management Executive, 3, 194-204.
56.
Nahavandi, A., & Malekzadeh, A. L. (1988). Acculturation in mergers and acquisitions. Academy of Management Review, 13, 79-90.
57.
Napier, N. K., Simmons, G., & Stratton, K. (1989). Communication during a merger: Experience of two banks. Human Resource Planning, 12, 105-122.
58.
Newman, J., & Krzystofiak, F. (1993). Changes in employee attitudes after an acquisition. Group & Organization Management, 18, 390-410.
59.
Rentsch, J. R., & Schneider, B. (1991). Expectations for post combination organizational life: A study of responses to merger and acquisition scenarios. Journal of Applied Social Psychology, 21, 233-252.
60.
Ross, S. A., Westerfield, R. W., & Jordan, B. D. (1995). Fundamentals of corporate finance. Burr Ridge, IL: Irwin.
61.
Scheck, C. L., & Kinicki, A. J. (2000). Identifying the antecedents of coping with an organizational acquisition: A structural assessment. Journal of Organizational Behavior, 21, 627-648.
62.
Schein, E. H. (1990). Organizational culture. American Psychologist, 45, 109-119.
63.
Schweiger, D. M., & Denisi, A. S. (1991). Communication with employees following a merger: A longitudinal field experiment. Academy of Management Journal, 24, 110-135.
64.
Schweiger, D. M., Ivancevich, J. M., & Power, F. R. (1987). Executive actions for managing human resources before and after acquisition. Academy of Management Executive, 1, 127-138.
65.
Schweiger, D. M., & Walsh, J. P. (1990). Mergers and acquisitions: An interdisciplinary view. Research in Personnel and Human Resource Management, 8, 41-107.
66.
Shearer, B. (2004). Taking potshots at golden parachutes. Mergers & Acquisitions, 39(9), 14-18.
67.
Shrivastava, P. (1986). Postmerger integration. Journal of Business Strategy, 7, 65-76.
68.
Sims, H. P., & Szilagyi, A. D. (1975). Leader structure and satisfaction of nurses: A path analysis approach. Journal of Applied Psychology, 60, 194-197.
69.
Sutton, R. I. (1987). The process of organizational death: Disbanding and reconnecting. Administrative Science Quarterly, 32, 542-569.
70.
Terry, D. J., & O’Brien, A. T. (2001). Status, legitimacy, and in group bias in the context of an organizational merger. Group Processes & Intergroup Relations, 4, 271-289.
71.
Thibaut, J., & Walker, L. (1975). Procedural justice. Hillsdale, NJ: Lawrence Erlbaum.
72.
Tyler, T., & Bies, R. (1990). Beyond formal procedures: The interpersonal context of procedural justice. In J. Carroll (Ed.), Applied social psychology and organizational settings (pp. 77-98). Hillsdale, NJ: Lawrence Erlbaum.
