Document Type

Article

Publication Date

4-1-2008

Abstract

Existing research has failed to find answers to improve the continuing high failure rates of mergers and acquisitions (M&A). The most frequently studied variables have offered no consistent explanations why some firms succeed and others fail. The unpredictability of M&A outcomes remains a mystery. Because mergers and acquisitions are most often associated with large-scale and sudden organizational change, we searched the broader field of organizational change for insight. The resulting conceptual model was used to explore the first-hand M&A experiences of managers, executive managers, employees, and change consultants. What emerged was evidence of significant shifts in commitment to change caused by the dynamics between workplace emotions and expectations of acquired firm personnel. These commitment shifts, particularly negative commitment shifts, offer an interesting and very plausible answer to why mergers and acquisitions fail. The study findings suggest that understanding commitment shifts in mergers and acquisitions provide the basis for finally reducing M&A failure rates.

Keywords

community foundations, mergers and acquisitions, commitment shift, commitment to change, workplace emotions, intentional change theory, expectancy theory

Rights

© The Author(s). Kelvin Smith Library provides access for non-commercial, personal, or research use only. All other use, including but not limited to commercial or scholarly reproductions, redistribution, publication or transmission, whether by electronic means or otherwise, without prior written permission is strictly prohibited.

Department/Center

Design & Innovation

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