Institutions and Organizational Socialization: Integrating Employees in Cross-Border Mergers and Acquisitions

University of Illinois Working Paper

55 Pages Posted: 21 May 2005

See all articles by Ruth V. Aguilera

Ruth V. Aguilera

Northeastern University - Department of International Business and Strategy

John Dencker

Northeastern University - D'Amore-McKim

Zeynep Y. Yalabik

University of Bath, School of Management

Abstract

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

Aguilera, Ruth V. and Dencker, John and Yalabik, Zeynep Y., Institutions and Organizational Socialization: Integrating Employees in Cross-Border Mergers and Acquisitions. University of Illinois Working Paper, Available at SSRN: https://ssrn.com/abstract=726584 or http://dx.doi.org/10.2139/ssrn.726584

Ruth V. Aguilera

Northeastern University - Department of International Business and Strategy ( email )

Boston, MA 02115
United States

John Dencker (Contact Author)

Northeastern University - D'Amore-McKim ( email )

360 Huntington Ave.
Boston, MA 02115
United States

Zeynep Y. Yalabik

University of Bath, School of Management ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

HOME PAGE: http://www.bath.ac.uk/management/faculty/zeynep_yalabik.html

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