Main Article Content
Abstract
Purpose: This study investigates the key factors influencing post-merger integration (PMI) success in mergers and acquisitions (M&A), focusing on internal organizational dynamics, external environmental conditions, and digital technology adoption.
Research Design and Methodology: A systematic literature review synthesizes existing research on M&A transactions, organizational behavior, leadership, technology adoption, and regulatory compliance to analyze PMI challenges and success determinants.
Findings and Discussion: The findings highlight that proactive leadership, effective communication, and transparent decision-making are crucial in fostering organizational cohesion and reducing resistance to change. Additionally, digital technology significantly enhances operational efficiency and drives value creation in the post-merger phase.
Implications: The study underscores the need for a holistic and strategic approach to PMI, ensuring that internal and external factors are effectively managed. These insights contribute to the academic discourse on M&A by providing practical recommendations for corporate leaders, policymakers, and researchers to enhance PMI outcomes. Future research should explore industry-specific integration challenges and the evolving role of digitalization in optimizing M&A success.
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This work is licensed under a Creative Commons Attribution 4.0 International License.
References
- Baker, M., & Ruback, R. S. (2023). Empirical evidence on the role of antitrust considerations in merger control. Journal of Law and Economics, 66(3), 681-728. https://doi.org/10.1086/722127
- Berger, A. N. (1998). The efficiency effects of bank mergers: An overview of case studies of nine mergers. Journal of Money, Credit and Banking, 30(3), 433-448. https://doi.org/10.2307/2601155
- Brouthers, K. D., Gao, Y., & Hennart, J.-F. (2020). Post-merger survival: The role of global integration capability and cultural distance in cross-border M&A. Global Strategy Journal, 10(1), 3-29. https://doi.org/10.1002/gsj.1389
- Capron, L., & Pistre, N. (2002). When do acquirers earn abnormal returns? Strategic Management Journal, 23(9), 781-794. https://doi.org/10.1002/smj.249
- Chang, S.-J., van Witteloostuijn, A., & Eden, L. (2022). Cultural integration in cross-border M&A: The moderating roles of organizational identity strength and cultural distance. Journal of International Business Studies, 53(2), 255-274. https://doi.org/10.1057/s41267-021-00451-7
- Chatterjee, S., & Wernerfelt, B. (2021). Vertical mergers in platform markets. Journal of Economics & Management Strategy, 30(2), 269-289. https://doi.org/10.1111/jems.12439
- Chen, L., Zhang, Q., Wang, Y. (2022). Leveraging Digital Technologies for Post-Merger Integration: Opportunities and Challenges. Information Systems Frontiers, 24(3), 679–693. https://doi.org/10.1007/s10796-021-10123-4
- Chen, S., Li, Y., & Liu, Y. (2022). Digital innovation management in mergers and acquisitions: A review and research agenda. Journal of Management Information Systems, 39(1), 204-239. https://doi.org/10.1080/07421222.2021.2023656
- Datta, D. K., Guthrie, J. P., Basuil, D. A., Pandey, A. (1992). Causes and Effects of Employee Downsizing: A Review and Synthesis. Journal of Management, 18(2), 97–112. https://doi.org/10.1177/014920639201800207
- Datta, D. K., Pinches, G. E., & Narayanan, V. K. (1992). Factors influencing wealth creation from mergers and acquisitions: A meta-analysis. Strategic Management Journal, 13(1), 67-84. https://doi.org/10.1002/smj.4250130106
- Gaughan, P. A. (2010). Mergers, acquisitions, and corporate restructurings (5th ed.). John Wiley & Sons.
- Gupta, A. K., & Sharma, S. (2021). Impact of COVID-19 on restructuring strategies in mergers and acquisitions. Journal of Corporate Finance, 67, 101899. https://doi.org/10.1016/j.jcorpfin.2021.101899
- Gupta, A. K., Sharma, S., & Mishra, A. (2022). Challenges and opportunities in mergers and acquisitions during the COVID-19 pandemic: A strategic perspective. International Journal of Management Reviews, 24(3), 819-844. https://doi.org/10.1111/ijmr.12322
- Haspeslagh, P. C., & Jemison, D. B. (1991). Managing acquisitions: Creating value through corporate renewal. Free Press.
- Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2022). Strategic management: Concepts and cases: Competitiveness and globalization (14th ed.). Cengage Learning.
- Huong, N. T. (2020). Efficiency gains in bank mergers: Evidence from the Vietnamese banking system. Journal of Asian Finance, Economics and Business, 7(1), 259-266. https://doi.org/10.13106/jafeb.2020.vol7.no1.259
- Johnson, S., Brown, M. (2023). The Role of Transformational Leadership in Post-Merger Integration: A Study of Organizational Cohesion. Journal of Organizational Change Management. https://doi.org/10.1108/JOCM-12-2022-0289
- Jones, G. R., & Smith, R. K. (2020). Corporate restructuring in response to COVID-19: Impact on firm performance. Strategic Management Journal, 41(13), 2303-2316. https://doi.org/10.1002/smj.3214
- Jones, G. R., & Wang, H. (2021). Responses to the COVID-19 pandemic: Corporate restructuring and firm performance. Academy of Management Discoveries, 7(1), 2-24. https://doi.org/10.5465/amd.2020.0165
- Kuemmerle, W. (2002). The drivers of foreign direct investment into research and development: An empirical investigation. Journal of International Business Studies, 33(2), 1-31. https://doi.org/10.1057/palgrave.jibs.8491002
- Larsson, R., Bengtsson, L., Henriksson, K., & Sparks, J. R. (2021). Achieving synergy in mergers and acquisitions: A review and research agenda. Journal of Management, 47(4), 1184-1211. https://doi.org/10.1177/0149206321999368
- Marks, M. L., & Mirvis, P. H. (2011). Joining forces: Making one plus one equal three in mergers, acquisitions, and alliances. John Wiley & Sons.
- Morck, R., Shleifer, A., & Vishny, R. W. (1990). Do managerial objectives drive bad acquisitions? Journal of Finance, 45(1), 31-48. https://doi.org/10.1111/j.1540-6261.1990.tb03766.x
- Mullins, J. W., & Sankar, S. (2019). Understanding mergers and acquisitions. Harvard Business Review Press.
- Nambisan, S., Lyytinen, K., Majchrzak, A. (2019). Digital Innovation Management: Reinventing Innovation Management Research in a Digital World. MIS Quarterly, 43(4), 1363–1383. https://doi.org/10.25300/MISQ/2019/14134
- Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2019). Digital innovation management: Reinventing innovation management research in a digital world. MIS Quarterly, 43(4), 1315-1333. https://doi.org/10.25300/MISQ/2019/14299.
- Ray, S. (2007). Do firms improve productivity and generate profits through mergers? Evidence from Indian manufacturing. Journal of Economic Behavior & Organization, 63(4), 821-841. https://doi.org/10.1016/j.jebo.2006.03.006
- Ray, S. (2009). Mergers and productivity: Evidence from Indian manufacturing. Oxford Bulletin of Economics and Statistics, 71(3), 375-397. https://doi.org/10.1111/j.1468-0084.2008.00532.x
- Rosenbaum, D. I., Pearl, R. G. (2009). Navigating Post-Merger Integration: Key Challenges and Considerations. Journal of Business Strategy, 30(5), 41–49. https://doi.org/10.1108/02756660911001830
- Yan, M., Sengupta, S. (2022). Regulatory Challenges in M&A Transactions: Implications for Post-Merger Integration. Strategic Management Journal, 43(1), 137–159. https://doi.org/10.1002/smj.3387
- Zaheer, S. (1995). Overcoming the Liability of Foreignness. Academy of Management Journal, 38(2), 341–363. https://doi.org/10.2307/256683
References
Baker, M., & Ruback, R. S. (2023). Empirical evidence on the role of antitrust considerations in merger control. Journal of Law and Economics, 66(3), 681-728. https://doi.org/10.1086/722127
Berger, A. N. (1998). The efficiency effects of bank mergers: An overview of case studies of nine mergers. Journal of Money, Credit and Banking, 30(3), 433-448. https://doi.org/10.2307/2601155
Brouthers, K. D., Gao, Y., & Hennart, J.-F. (2020). Post-merger survival: The role of global integration capability and cultural distance in cross-border M&A. Global Strategy Journal, 10(1), 3-29. https://doi.org/10.1002/gsj.1389
Capron, L., & Pistre, N. (2002). When do acquirers earn abnormal returns? Strategic Management Journal, 23(9), 781-794. https://doi.org/10.1002/smj.249
Chang, S.-J., van Witteloostuijn, A., & Eden, L. (2022). Cultural integration in cross-border M&A: The moderating roles of organizational identity strength and cultural distance. Journal of International Business Studies, 53(2), 255-274. https://doi.org/10.1057/s41267-021-00451-7
Chatterjee, S., & Wernerfelt, B. (2021). Vertical mergers in platform markets. Journal of Economics & Management Strategy, 30(2), 269-289. https://doi.org/10.1111/jems.12439
Chen, L., Zhang, Q., Wang, Y. (2022). Leveraging Digital Technologies for Post-Merger Integration: Opportunities and Challenges. Information Systems Frontiers, 24(3), 679–693. https://doi.org/10.1007/s10796-021-10123-4
Chen, S., Li, Y., & Liu, Y. (2022). Digital innovation management in mergers and acquisitions: A review and research agenda. Journal of Management Information Systems, 39(1), 204-239. https://doi.org/10.1080/07421222.2021.2023656
Datta, D. K., Guthrie, J. P., Basuil, D. A., Pandey, A. (1992). Causes and Effects of Employee Downsizing: A Review and Synthesis. Journal of Management, 18(2), 97–112. https://doi.org/10.1177/014920639201800207
Datta, D. K., Pinches, G. E., & Narayanan, V. K. (1992). Factors influencing wealth creation from mergers and acquisitions: A meta-analysis. Strategic Management Journal, 13(1), 67-84. https://doi.org/10.1002/smj.4250130106
Gaughan, P. A. (2010). Mergers, acquisitions, and corporate restructurings (5th ed.). John Wiley & Sons.
Gupta, A. K., & Sharma, S. (2021). Impact of COVID-19 on restructuring strategies in mergers and acquisitions. Journal of Corporate Finance, 67, 101899. https://doi.org/10.1016/j.jcorpfin.2021.101899
Gupta, A. K., Sharma, S., & Mishra, A. (2022). Challenges and opportunities in mergers and acquisitions during the COVID-19 pandemic: A strategic perspective. International Journal of Management Reviews, 24(3), 819-844. https://doi.org/10.1111/ijmr.12322
Haspeslagh, P. C., & Jemison, D. B. (1991). Managing acquisitions: Creating value through corporate renewal. Free Press.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2022). Strategic management: Concepts and cases: Competitiveness and globalization (14th ed.). Cengage Learning.
Huong, N. T. (2020). Efficiency gains in bank mergers: Evidence from the Vietnamese banking system. Journal of Asian Finance, Economics and Business, 7(1), 259-266. https://doi.org/10.13106/jafeb.2020.vol7.no1.259
Johnson, S., Brown, M. (2023). The Role of Transformational Leadership in Post-Merger Integration: A Study of Organizational Cohesion. Journal of Organizational Change Management. https://doi.org/10.1108/JOCM-12-2022-0289
Jones, G. R., & Smith, R. K. (2020). Corporate restructuring in response to COVID-19: Impact on firm performance. Strategic Management Journal, 41(13), 2303-2316. https://doi.org/10.1002/smj.3214
Jones, G. R., & Wang, H. (2021). Responses to the COVID-19 pandemic: Corporate restructuring and firm performance. Academy of Management Discoveries, 7(1), 2-24. https://doi.org/10.5465/amd.2020.0165
Kuemmerle, W. (2002). The drivers of foreign direct investment into research and development: An empirical investigation. Journal of International Business Studies, 33(2), 1-31. https://doi.org/10.1057/palgrave.jibs.8491002
Larsson, R., Bengtsson, L., Henriksson, K., & Sparks, J. R. (2021). Achieving synergy in mergers and acquisitions: A review and research agenda. Journal of Management, 47(4), 1184-1211. https://doi.org/10.1177/0149206321999368
Marks, M. L., & Mirvis, P. H. (2011). Joining forces: Making one plus one equal three in mergers, acquisitions, and alliances. John Wiley & Sons.
Morck, R., Shleifer, A., & Vishny, R. W. (1990). Do managerial objectives drive bad acquisitions? Journal of Finance, 45(1), 31-48. https://doi.org/10.1111/j.1540-6261.1990.tb03766.x
Mullins, J. W., & Sankar, S. (2019). Understanding mergers and acquisitions. Harvard Business Review Press.
Nambisan, S., Lyytinen, K., Majchrzak, A. (2019). Digital Innovation Management: Reinventing Innovation Management Research in a Digital World. MIS Quarterly, 43(4), 1363–1383. https://doi.org/10.25300/MISQ/2019/14134
Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2019). Digital innovation management: Reinventing innovation management research in a digital world. MIS Quarterly, 43(4), 1315-1333. https://doi.org/10.25300/MISQ/2019/14299.
Ray, S. (2007). Do firms improve productivity and generate profits through mergers? Evidence from Indian manufacturing. Journal of Economic Behavior & Organization, 63(4), 821-841. https://doi.org/10.1016/j.jebo.2006.03.006
Ray, S. (2009). Mergers and productivity: Evidence from Indian manufacturing. Oxford Bulletin of Economics and Statistics, 71(3), 375-397. https://doi.org/10.1111/j.1468-0084.2008.00532.x
Rosenbaum, D. I., Pearl, R. G. (2009). Navigating Post-Merger Integration: Key Challenges and Considerations. Journal of Business Strategy, 30(5), 41–49. https://doi.org/10.1108/02756660911001830
Yan, M., Sengupta, S. (2022). Regulatory Challenges in M&A Transactions: Implications for Post-Merger Integration. Strategic Management Journal, 43(1), 137–159. https://doi.org/10.1002/smj.3387
Zaheer, S. (1995). Overcoming the Liability of Foreignness. Academy of Management Journal, 38(2), 341–363. https://doi.org/10.2307/256683