Merger dynamics Using system dynamics for the conceptual integration of a fragmented knowledge base
Purpose - Mergers and acquisitions (M&As) have drawn the attention of researchers for several decades. Many studies have investigated the factors apparently influencing the success of an M&A deal, leading to an extensive, yet extremely fragmented body of knowledge. Although the logical quest for integration has been expressed by several authors, in most cases investigations focus only on details of M&As. The aim of this paper is to offer a different way of synthesis that allows testing well-established theories of post-merger integration processes. Design/methodology/approach - With the help of a literature-based system dynamics (SD) model, the paper opens up a new perspective on the organizational processes occurring during post-merger integration. Particular emphasis is put on the investigation of capability transfer, the change of corporate culture, and the employees' perception of the integration process. Findings - The model-based analysis delivers explanations for the contradicting results of many empirical studies, based on the structural integration of a broad body of knowledge and the analysis of simulation runs. The paper suggests that SD models may be used as a means to achieve a more consistent conceptual integration than usual "theoretical frameworks" can provide. Research limitations/implications - Since the model is primarily based on theoretical ideas, an empirical validation of results seems most critical. Additionally, the linkage to organizational performance measures may need additional modelling effort., Practical implications The paper demonstrates the various interrelationships between organizational capabilities, culture, and employee commitment of two merging companies. Originality/value - The paper is one of the few that strives for an integrated perspective on post-merger phenomena.
integration modelling acquisitions and mergers strategic management knowledge transfer