• Nicholas Jackson


In an ongoing effort for organizations to remain competitive and innovative, the strategic option of mergers and acquisitions (M&A) has increased significantly in popularity over the past 25 years during a time when there has been a radical change in the motives and objectives of integrating organizations. This form of organizational development has proved to be a popular means for achieving corporate diversity, growth, and rationalization and provides the flexibility for organizations to grow quickly and develop a competitive advantage (e.g. access to new markets, resources and competencies, and rationalization). M&A can add value and create significant opportunities for both organization and individual alike, helping to fulfill unmet needs (e.g. new knowledge and capabilities) and enabling opportunities to revitalize and shore up long-term survival. A combination of existing forms of knowledge can encourage new knowledge to evolve. However, even though they are often the preferred route for growing organizations, there is further data raising awareness to underachievement, underperformance, and stakeholder dissatisfaction. A number of studies highlight that over half of acquisitions fail to meet the objectives of the parties involved. This chapter provides context to the current study by investigating trends, integration objectives, and common features of success and failure.


  1. Agarwal, A., & Jaffe, J. F. (2000). The post-merger performance puzzle. In C. Cooper & A. Gregory (Eds.), Advances in mergers and acquisitions (Vol. 1, pp. 7–14). New York: Elsevier Science.Google Scholar
  2. Barkema, H. G., Bell, J. H. J., & Pennings, J. M. (1996). Foreign entry, cultural barriers and learning. Strategic Management Journal, 17, 151–166.CrossRefGoogle Scholar
  3. Barkema, H. G., & Vermeulen, F. (1998). International expansion through start-up or acquisition: A learning perspective. Academy of Management Journal, 41, 7–26.Google Scholar
  4. Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99–120.CrossRefGoogle Scholar
  5. Berggren, C. (2003). Mergers, MNES and innovation—The need for new research approaches. Scandinavian Journal of Management, 19, 173–193.CrossRefGoogle Scholar
  6. Bresman, H., Birkinshaw, J., & Nobel, R. (1999). Knowledge transfer in international acquisitions. Journal of International Business Studies, 30, 439–462.CrossRefGoogle Scholar
  7. Brueller, N. N., Carmeli, A., & Drori, I. (2014). How do different types of mergers and acquisitions facilitate strategic agility. California Management Review, 56(3), 39–57.CrossRefGoogle Scholar
  8. Capron, L. (1999). The long-term performance of horizontal acquisitions. Strategic Management Journal, 20, 987–1018.CrossRefGoogle Scholar
  9. Capron, L. (2004). The long-term performance of horizontal acquisitions. Strategic Management Journal, 20, 987–1018.CrossRefGoogle Scholar
  10. Cartwright, S., & Cooper, C. L. (1992). Mergers and acquisitions: The human factor. Oxford, UK: Butterworth-Heinmann Ltd.Google Scholar
  11. Cartwright, S., & Cooper, C. L. (1995). Organizational marriage: “hard” versus “soft” issues? Personnel Review, 24(3), 32–43.CrossRefGoogle Scholar
  12. Citera, M., & Rentsch, J. R. (1993). Is there justice in organizational acquisitions? The role of distributive and procedural fairness in corporate acquisitions. In R. Cropanzano (Ed.), Justice in the workplace: Approaching fairness in human resource management (pp. 211–230). Hilsdale, NJ: Erlbaum.Google Scholar
  13. Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35, 128–152.CrossRefGoogle Scholar
  14. Covin, T., Kolenko, T. A., Sightler, K. W., & Tudor, R. K. (1997). Leadership style and post-merger satisfaction. The Journal of Management Development, 16(1), 22–34.CrossRefGoogle Scholar
  15. Erez-Rein, N., Erez, M., & Maital, S. (2004). Mind the gap: Key success factors in cross-border acquisitions. In A. L. Pablo & M. Javidan (Eds.), Mergers and acquisitions: Creating integrative knowledge. Oxford, UK: Blackwell Publishing.Google Scholar
  16. Franks, J. R., & Mayer, C. (1996). Hostile takeovers and correction of managerial failure. Journal of Financial Economics, 40, 163–181.CrossRefGoogle Scholar
  17. Galpin, T. J., & Herndon, M. (2007). The complete guide to mergers and acquisitions: Process tools to support M&A integration at every level (2nd ed.). San Francisco: Jossey-Bass.Google Scholar
  18. Gaughan, P. A. (2011). Mergers, acquisitions, and corporate restructurings (5th ed.). Hoboken, NJ: Wiley.Google Scholar
  19. Halvorsen, K. (1984). Mergers creating inequalities. Journal for Contemporary Research, 25, 389–414.Google Scholar
  20. Hannan, M. T., & Freeman, J. (1984). Structural inertia and organizational change. American Sociological Review, 49, 149–164.CrossRefGoogle Scholar
  21. Haspeslagh, P., & Jemison, D. B. (1991). Managing acquisitions: Creating value through corporate renewal. New York: Free Press.Google Scholar
  22. Hayward, M. L. A. (2002). When do firms learn from their acquisitions experience? Evidence from 1990–1995. Strategic Management Journal, 23, 21–39.CrossRefGoogle Scholar
  23. Hitt, M., & Pisano, V. (2004). Cross-border mergers and acquisitions: Challenges and opportunities. In A. L. Pablo & M. Javidan (Eds.), Mergers and acquisitions: Creating integrative knowledge. Oxford, UK: Blackwell Publishing.Google Scholar
  24. Horwitz, F. M., Anderssen, K., Bezuidenhout, A., Cohen, S., Kirsten, F., Mosoeunyane, K., et al. (2002). Due diligence neglected: Managing human resources and organizational culture in mergers and acquisitions. South African Journal of Business Management, 33(1), 1–10.Google Scholar
  25. Hubbard, N. (2001). Acquisition strategy and implementation. Basingstoke, UK: Palgrave.Google Scholar
  26. Hubbard, N., & Purcell, J. (2001). Managing employee expectations during acquisitions. Human Resource Management Journal, 11(2), 17–33.CrossRefGoogle Scholar
  27. Hunt, J. W., Lees, S., Grumbar, J., & Vivian, P. D. (1987). Acquisitions: The human factor. London: London Business School/Egon Zehnder International.Google Scholar
  28. Johnson, G., Scholes, K., & Whittington, R. (2011). Exploring strategy: Text & cases (9th ed.). Harlow, UK: Prentice Hall.Google Scholar
  29. Kavanagh, M. H., & Ashkanasy, N. M. (2006). The impact of leadership and change management strategy on organizational culture and individual acceptance of change during a merger. British Journal of Management, 17(March Suppl), S81–S103.CrossRefGoogle Scholar
  30. King, D. R., Dalton, D. R., Daily, C. M., & Covin, J. G. (2004). Meta-analyses of post-acquisition performance: Indications of unidentified moderators. Strategic Management Journal, 25, 187–200.CrossRefGoogle Scholar
  31. Kini, O., Kracaw, W., & Mian, S. (2004). The nature of discipline by corporate takeovers. Journal of Finance, 59, 1511–1552.CrossRefGoogle Scholar
  32. Kitching, J. (1974). Winning and losing with European acquisitions. Harvard Business Review, 52(2), 124–136.Google Scholar
  33. Kogut, B., & Zander, U. (1992). Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3, 388–397.CrossRefGoogle Scholar
  34. Krug, J. A., Wright, P., & Kroll, M. J. (2015). Top management turnover following mergers & acquisitions: Solid research to date but still much to be learned. The Academy of Management Perspectives, 3015(1), 30–46.Google Scholar
  35. Lane, P. J., & Lubatkin, M. (1998). Relative absorptive capacity and interorganizational learning. Strategic Management Journal, 19, 461–478.CrossRefGoogle Scholar
  36. Larsson, R., Brousseau, K. R., Driver, M. J., & Sweet, P. L. (2004). The secrets of merger and acquisition success: A co-competence and motivational approach to synergy realization. In A. L. Pablo & M. Javidan (Eds.), Mergers and acquisitions: Creating integrative knowledge. Oxford, UK: Blackwell Publishing.Google Scholar
  37. Levitt, B., & March, J. G. (1988). Organizational learning. In W. R. Scott (Ed.), Annual review of sociology (Vol. 14, pp. 319–340). Palo Alto, CA: Annual Reviews.Google Scholar
  38. Marks, M. L., & Cutcliffe, J. G. (1988). Making mergers work. Training and Development Journal, 42(4), 30–36.Google Scholar
  39. Marks, M. L., & Mirvis, P. H. (2001). Making mergers and acquisitions work: Strategic and psychological preparation. Academy of Management Executive, 15, 80–92.Google Scholar
  40. Miller, D. (1993). The architecture of simplicity. Academy of Management Review, 18, 116–138.CrossRefGoogle Scholar
  41. Mirvis, P. H. (1985). Negotiations after the sale: The roots and ramifications of conflict in an acquisition. Journal of Occupational Behavior, 6(1), 65–84.CrossRefGoogle Scholar
  42. Neef, D. (1999). Making the case for knowledge management: The bigger picture. Management Decision, 37(1), 72–85.CrossRefGoogle Scholar
  43. Olie, R. (1994). Shades of culture and institutions in international mergers. Organization Studies, 15, 381–405.CrossRefGoogle Scholar
  44. Ravenscraft, D., & Scherer, F. M. (1987). Mergers, sell-offs and economic efficiency. Washington, DC: Brookings Institution.Google Scholar
  45. Rentsch, J. R., & Schneider, B. (1991). Expectations for postcombination organizational life: A study of responses to merger and acquisition scenarios. Journal of Applied Social Psychology, 21, 233–252.CrossRefGoogle Scholar
  46. Rostand, A. (1994). Optimizing managerial decisions during the acquisition integration process. Paper presented to 14th Annual Strategic Management Society International Conference, Paris.Google Scholar
  47. Schoenberg, R. (2006). Measuring the performance of corporate acquisitions: An empirical comparison of alternative metrics. British Journal of Management, 17, 361–370.CrossRefGoogle Scholar
  48. Schweiger, D. M., Ivancevich, J. M., & Power, F. R. (1987). Executive actions for managing human resources before and after acquisitions. Academy of Management Executive, 1, 127–137.Google Scholar
  49. Sullivan, D. P. (2000). Cultural cognition in international business research. Management International Review, 40, 269–298.Google Scholar
  50. Terry, D. J. (2003). Social identity and diversity in organizations. Asia Pacific Journal of Human Resources, 41, 25–35.CrossRefGoogle Scholar
  51. Terry, D. J., & O’Brien, A. T. (2001). Status, legitimacy, and ingroup bias in the context of an organizational merger. Group Processes and Intergroup Relations, 4, 271–289.CrossRefGoogle Scholar
  52. Thomson One Banker. (2017). M&A Financial Advisory Q4 2016 [online]. Retrieved October 20, 2017, from
  53. Tuch, C., & O’Sullivan, N. (2007). The impact of acquisitions on firm performance: A review of the evidence. International Journal of Management Reviews, 9(2), 141–170.CrossRefGoogle Scholar
  54. van Knippenberg, D., van Knippenberg, B., Monden, L., & de Lima, F. (2002). Organizational identification after a merger: A social identity perspective. British Journal of Social Psychology, 41, 233–252.CrossRefGoogle Scholar
  55. Vazirani, N. (2015). A literature review on mergers and acquisitions waves and theories. SIES Journal of Management, 11(1), 3–9.Google Scholar
  56. Vermeulen, F., & Barkema, H. G. (2001). Learning through acquisitions. Academy of Management Journal, 44, 457–476.Google Scholar
  57. Wishard, B. J. (1985). Merger human dimension. The Magazine Bank Administration, 61(6), 74–79.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Nicholas Jackson
    • 1
  1. 1.Leeds University Business SchoolLeedsUK

Personalised recommendations