Continuity and Change in Mergers and Acquisitions: A Social Identity Case Study of a German Industrial Merger*

abstract It is crucial from an employee's point of view to perceive some degree of stability even in times of major organizational change. This paper examines the role of a sense of continuity for organizational identification after an organizational merger. We argue that mergers and acquisitions so often end in failures partly because the change is designed in discontinuous ways and employees do not feel they are doing the same job after the merger as before. Such discontinuous change engenders a critical tension between positive and negative effects of identification that has not yet been fully understood. To deepen the understanding of this tension, in‐depth interviews were conducted in a recently merged German industrial company. Based on these qualitative data we demonstrate how features of the post‐merger company structure and the way it was implemented may have eroded organizational identification. Finally, we propose a parsimonious model to be tested by future research, in which the sense of continuity is consisting of both observable as well as projected continuity.     

Union Mergers: The New Interest and Some Old Questions

When the merged union UNITE HERE was recently torn apart by internal dissent, the labor movement’s attention turned to some longstanding questions about how union mergers are negotiated, why some fail and others succeed, how members are affected by merger, and how the big, diverse unions created by mergers—the super-unions—manage to stay intact. This article addresses these questions, arguing throughout that little is actually known about the union merger process and outcomes. In doing so, it also suggests that some union mergers, such as the one forming UNITE HERE, may not always make sense and that bigger unions created by mergers are not necessarily better unions.     

A Strategic Choice–resource Dependence Analysis of Union Mergers in the British and Australian Broadcasting and Film Industries

Since the late 1980s there has been a marked increase in the rate of union restructuring and merger in both Britain and Australia. This has been particularly prevalent in the film and broadcasting industries in both countries. This organizational change has largely been triggered by environmental turbulence which has altered the availability and control of resources required for organizational survival. Accepting the concept from strategic choice theory that trade unions are able to exercise a degree of choice over the way in which they manage and adapt to changes in their external and internal environments, the paper demonstrates how an integration of strategic choice and resource dependence perspectives can explain why organizations behave in different ways and, in particular, why trade union mergers in the film and broadcasting industries have occurred. Further, the perspective also explains why some trade unions chose not to merge. An integration of resource dependence theory with strategic choice theory explains why trade unions make particular strategic decisions. Conversely, strategic choice explains how organizations acquire resources and manage dependencies. The paper concludes by making the case for an integration of the two perspectives for future studies of organizational behaviour and change.     

How gender matters: A conceptual and process model for family-supportive supervisor behaviors

Work-family management has become a highly salient issue for organizations as the world of work experiences ongoing changes due to globalization, technological advances, and new challenges spurred by the COVID-19 pandemic. In the past decade or so, the concept of family-supportive supervisor behaviors (FSSB) has been recognized by management and organizational science scholars as an important resource for alleviating negative pressures related to work-family management. However, despite evidence suggesting organizations are heavily gendered (i.e., built upon and structured according to assumptions about gender) and that FSSB represent a set of gendered behaviors, the role of gender is largely missing from FSSB theorization. In addition, little is known regarding the antecedents of FSSB and the mechanisms responsible for the enactment or withholding of FSSB by supervisors. To address these gaps, we perform an interdisciplinary theoretical integration to develop a conceptual and process model of gendered antecedents of the FSSB decision-making process. We present theoretically driven propositions regarding how gender-related variables of the supervisory dyad influence both 1) if/how supervisors become aware of an FSSB opportunity, and 2) supervisors' FSSB decisions to enact, withhold, or neglect FSSB. We conclude with practical implications and opportunities for future FSSB research based on implications of our theoretical insights.     

The role of human resource management in cross-border mergers and acquisitions

Cross-border mergers and acquisitions (M&As) have become the dominant mode of growth for firms seeking competitive advantage in an increasingly complex and global business economy. Although human resource management (HRM) can play a value-adding role in the merger process, existing research and evidence does not clearly demonstrate how it can do so. This paper addresses the neglected human side of M&As by providing a strategic fit framework to assess the link between M&A strategy and HRM strategy. Because cross-border M&As are of an order of magnitude more complex than domestic mergers, we examine contingencies in national contexts that influence outcomes in the merger process. We draw on recent empirical evidence to highlight HRM roles in terms of resources, processes and values that reflect the influence of both strategic fit and national context in the integration stage of cross-border M&A.     

Potential efficiency effects of merging the Swedish district courts

The Swedish district courts have undergone a substantial restructuring process in which the main reform has been to merge. As a result, the number of district courts has declined from 95 in 2000 to only 48 in 2009. All main arguments that support merging concern enhancements of efficiency. However, it has not yet been explicitly examined whether the mergers have the potential to increase efficiency ex ante. Thus, the expectation concerning higher efficiency was built on a subjective view. This paper investigates whether the mergers can be rationalized from a production economic point of view. Data envelopment analysis (DEA) is used to compute a production frontier where the conducted mergers are incorporated to identify the potential ex ante gains. Furthermore, the overall potential is decomposed into learning, scale, and harmony to investigate the source of the potential gain, e.g., an effect of adjusting to best practice or a pure merging effect such as scale. The results show diverse potentials, i.e., a number of mergers did not have the potential to gain in efficiency while others could gain substantially. A conclusion based on the analysis is that the potential production economic effects should be investigated before merger decisions are made in the future. This is also likely to be true beyond the Swedish district courts.     

Stock market perceptions of the motives for mergers in cases reviewed by the UK competition authorities: an empirical analysis

A number of studies have considered the motivation of managers to follow a merger strategy. However, as far as we are aware none has looked at the influence of competition regulation on merger motives using stock market data and event study techniques. Data drawn from 63 merger cases in the UK between 1989 and 2003 are examined for the stock market's perceptions of what motivated managers to pursue their initial merger bid. The findings suggest that the Synergy and Hubris dominate as motivations for mergers and that, unintentionally, competition policy may help to reduce the number of mergers motivated by Managerialism. Copyright © 2008 John Wiley & Sons, Ltd.     

Integration or disintegration? Human resource implications of a common corporate language decision in a cross-border merger

The primary purpose of introducing a common corporate language in cross-border mergers is to integrate two previously separate organizations and facilitate communication. However, the present case study of a cross-border merger between two Nordic banks shows that the common corporate language decision may have disintegrating effects, particularly at organizational levels below top management. We identify such effects on performance appraisal, language training and management development, career paths, promotion and key personnel. Our findings show that top management needs to work through the consequences of the language decision upon those who are expected to make such a decision work.     

并购中的业绩承诺条款与股价崩盘风险

本文以2008—2016年有业绩承诺的A股上市公司为样本,研究了并购中业绩补偿承诺条款的设置与兑现对并购业绩的影响,以及并购业绩未达预期产生的经济后果。研究发现,设定高增长率的业绩目标对并购业绩完成具有负面作用,采用股份补偿、非累计补偿、减值测试补偿以及双向业绩对赌对并购业绩实现具有积极作用。在承诺兑现过程中,承诺后期业绩目标压力更大,业绩完成率更低。在业绩承诺完成的经济后果方面,本文发现,未完成业绩承诺的并购相对于完成承诺的并购具有更高的股价崩盘风险,进行盈余管理的并购相对于未进行盈余管理的并购具有更高的股价崩盘风险。     

Work–family conflict and the commodification of women's employment in three Chinese airlines

In the East, where gender is mediated by different family structures, societal institutions and economic development, the work–family conflict (WFC) metaphor remains appropriate. This paper investigates Chinese women's experiences of WFC in the fastest growing commercial airline sector in the world. It finds that, in contrast to the West, work-to-family, rather than family-to-work, conflict dominates. Liberalization, competition and commercialization have also had a significant gendered impact on jobs. The latter resulting in the commodification of women's aesthetic and emotional labour, job segregation, employment insecurity, poor career opportunities and increased WFC. We explore reasons why HR policies and practices in airlines fail to address women's workplace concerns and find that occupational status and lack of organizational power, together with the prevalence of traditional gendered norms and attitudes, play important roles     

Price Discrimination under Customer Recognition and Mergers

This paper studies the interaction between horizontal mergers and price discrimination by endogenizing the merger formation process in the context of a repeated purchase model with two periods and three firms wherein firms may engage in behavior‐based price discrimination (BBPD). From a merger policy perspective, this paper's main contribution is twofold. First, it shows that when firms are allowed to price discriminate, the (unique) equilibrium merger gives rise to significant increases in profits for the merging firms (the ones with information to price discriminate), but has no ex‐post effect on the outsider firm's profitability, thereby eliminating the so‐called (static) “free‐riding problem.” Second, this equilibrium merger is shown to increase industry profits at the expense of consumers' surplus, leaving total welfare unaffected. This then suggests that competition authorities should scrutinize with greater zeal mergers in industries where firms are expected to engage in BBPD.     

能源企业海外并购：取得了什么效应？——以兖州煤业并购菲利克斯为例

金融危机以来,能源企业海外并购成为了并购浪潮的生力军,所完成的并购交易规模居各行业之首。但这一系列的并购能够为能源企业带来什么样的并购效应,有待于理论上的研究检验。本文采用案例研究方法以兖州煤业并购澳大利亚菲利克斯事件为样本,研究分析了能源企业并购重组的经济效应,得出以下结论：并购市场层面效应显著,企业规模迅速扩张,拓...     

Managing ambiguity: merger activity in the nonprofit housing sector

Merger behaviour in the nonprofit sector has been relatively neglected, yet has considerable marketing implications. This paper draws on a range of sources to explore the nature of merger activity in the nonprofit housing industry. It locates mergers within debates about inter-organisational strategies, and explores the context, extent, motivations for and regulation of mergers in the housing industry. While there are many similarities in environmental stimuli to and processes of negotiating mergers between the profit-distributing and nonprofit sectors, there are some distinctive features. This research explores the ambiguous nature of the merger activity among housing organisations. This ambiguity infects the terminology and record-keeping systems and helps to explain a significant gap between rhetoric and activity. Such ambiguity may be more than a negotiating strategy. It may represent the attempt to manage conflicting pressures to market nonprofit organisations as ‘sensitively serving the needs of society’ by on the one hand being competitive and efficient while on the other remaining value based and locally accountable. Copyright © 1999 Henry Stewart Publications     

Horizontal alliances and the merger paradox

Mergers and alliances are two organizational forms which allow firms to combine complementary capabilities to realize strategic goals; they are, in many cases, strategic substitutes. Managerial decision‐makers, therefore, require a framework for choosing between the two strategies. This paper contributes to this decision‐making process by highlighting one advantage of alliances over mergers. Specifically, while the profitability of a cost‐reducing horizontal merger is diminished by the resulting expansion of non‐merging competitor(s), an alliance, where partners collaborate to reduce costs but sell their product independently, enables its partners to realize the benefits of merging but avoid the problem of strengthening competitors. A model is developed which demonstrates the profitability of establishing such an alliance compared to a merger. The implications of this strategy for antitrust review are briefly discussed. Copyright © 2005 John Wiley & Sons, Ltd.     

Is economic efficiency the driving force behind mergers?

Some economists routinely argue against government regulation that limits the number of mergers and acquisitions. They believe that, as a matter of empirical fact, almost all mergers enhance economic efficiency. The possibility that some mergers do not create wealth but merely redistribute it is ignored. We study all companies delisted from the New York Stock Exchange for reason of merger since 1926. We find that economic efficiency cannot easily explain merger waves. Contrary to the disciplinary hypothesis, acquisition targets are not, in large majority, poor stock market performers. We also report evidence consistent with stock market undervaluation as a merger motive.     

Merger propensity and merger outcomes among British unions, 1986-1995

This article focuses on the relationship between merger propensity and merger success in British trade unions. Using survey data it reveals that more unions seek merger than achieve it; most mergers in the period are accounted for by few unions. However, some merger discussions are protracted and the determinants of propensity are distinct from those of success.     

Business cycle and aggregate industry mergers

This paper tests the relationship between industry-level mergers and business cycle using panel tests that allow us to control for macro-economic and industry-level determinants of merger activity. We find robust evidence that both related and unrelated industry-level mergers are pro-cyclical. However, the evidence is asymmetric between related and unrelated mergers. We also find strong evidence in support of two major theories of merger activity that have been proposed and tested in the existing literature, namely, neoclassical theory and behavioral theory. The proxies of both neoclassical and behavioral theories explain merger activity in general; however, the pro-cyclicality of mergers is not fully captured by any of these proxies, individually or collectively.     

Mergers,MNES and innovation—the need for new research approaches

A merger wave on an unprecedented scale has recently been sweeping through the Western world. Many studies have demonstrated the unimpressive economic outcome of most mergers. This article argues that an important reason for disappointing long-term performance is the underestimated difficulties of integrating idiosyncratic technologies in unified product platforms. Instead of focusing on new product development, engineers and designers are drawn into lengthy harmonisation issues. An expanded research agenda is proposed, including the role of special interests in driving merger proposals, the impact of mergers on engineering creativity and innovation, and the identification of industries in which firm trajectories of scale and size, ultimately ending in mergers can be compared with the alternative dynamics of de–mergers, knowledge-based networks and research-based start-ups.     

我国总体并购活动与宏观经济变量的关联性研究——对我国并购浪潮成因的分析

本文对我国总体并购活动与GDP增长率、货币供应量、利率、股价及汇率的关联性实证研究结果表明，并购周期与经济周期具有较强的相关性，具有长期均衡关系；货币供应量、利率、股价和汇率等与总体并购活动具有长期稳定的关系，但短期内，利率与并购活动显著地负相关；货币供应量对总体并购活动有微弱的正相关关系；股价指数和汇率对总体并购活动有负影响，且影响程度很弱。这说明，经济周期和利率是我国并购浪潮形成的主要原因。     

The role of leadership in successful international mergers and acquisitions: Why Renault‐Nissan succeeded and DaimlerChrysler‐Mitsubishi failed

This article compares and contrasts the Renault‐Nissan and DaimlerChrysler‐Mitsubishi mergers to consider the relative and combined effects of national and organizational culture on the performance of Nissan and Mitsubishi. It also examines the reasons why the Renault‐Nissan merger was successful and the DaimlerChrysler‐Mitsubishi merger failed. It finds that Japanese national culture influenced organizational culture and HRM practices, which created organizations that had no sense of urgency, profit orientation, or accountability and led to poor market and financial performance. It also finds that leadership was a major factor impacting on the success of the turnaround efforts of these two organizations. These findings have implications for leaders and human resource management practitioners engaged in international business and are of particular relevance to Western organizations working with organizations in high‐context countries with a collectivist rather than individualist orientation. © 2012 Wiley Periodicals, Inc.