An insider Action Research study focusing on synergy realizations during post-merger integration phase between competing organizations

Abstract

Mergers and acquisitions are gaining a lot of prominence in global corporate dynamics as a strategic way for organizations to grow and diversify rapidly. The significance of post-merger integration cannot be overstated (Shrivastava, 1986). Although the main purpose behind organizational mergers and acquisitions is “One plus one makes three”, most post-merger integration studies focus upon failures (Dutta, Dutta, and Das, 2011). This research study is based in the context of post-merger integration between two competing firms and presents an empirical Action Research study focusing on “synergy realization”. This research study builds upon Clayton’s (2010) work on Complex Adaptive System (CAS) (Stacey, 2011) for realizing synergies amidst post-merger integration. CAS has been complemented by Complexity Leadership Theory (Uhl-Bien, Marion and McKelvey, 2007) which provides some control over the otherwise unpredictable nature of CAS. This study also attempts to utilize proven methodologies and methods oriented around organizational behavior, change management, emergence, co-evolution, and other leadership concepts that are anchored in Mode 2 research. The research methods, as well as the issues related to the research context, have continuously evolved while conducting this research study due to reflections offered by the double loop learning process. Although the primary focus of this study was to identify synergy realizations during the merger integration phase, the research study also explored the underpinning issues, problems, and challenges faced by organizational members while adjusting to or reconciling the different ways of functioning and behaving that were affecting synergy realizations. This study therefore also includes findings associated with organizational merger associated concerns such as interpersonal issues, human resource, knowledge management, communication, organizational management, leadership, and organizational ethos. This study makes 3 main contributions. First, this research study presents innovative insights towards resolving some of the mysteries attached with organizational mergers, by focusing upon positive merger objectives through synergy realizations by heeding to Clayton’s (2010) appeal for scholars and practitioners to go beyond traditional M&A methodologies. Second, this study presents an empirical account of some of the Mode 2 knowledge creation concepts such as Action Research, CAS, CLT, SSM and LiC, which has the potential of inspiring similar experimentation in organizational learning and management research. And third, this study demonstrates how researching practitioners can make an impact on successful adaptations to organizational change management situations such as the ones presented by organizational mergers by bridging the gap between theory and practice, and building upon research-oriented knowledge through AR and professional doctorate programmes.