Institutions and Organizational Socialization: Integrating Employees in Cross-Border Mergers and Acquisitions
University of Illinois Working Paper
55 Pages Posted: 21 May 2005
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. However, there is little theory and practical advice on how to do so. 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. We conclude by presenting managerial implications of our model and suggestions for future research.
Keywords: Acquisitions, socialization, institutions, post-merger integration
JEL Classification: M1, M12, M14
Suggested Citation: Suggested Citation