Developing Equality in Merger of Equals: A Grounded-Theory Study

Abstract

The goals of this thesis are to explore and discover a new understanding of the underlying dynamics of Post-Merger Integration (PMI) that lead to equality during a merger within the researcher’s organisation and develop a framework for informed action. Starting with a broad research question of ‘what are the factors that influence the construction of equality during PMI?’ that was followed by a foundational literature review that shed light on the complexity of Merger and Acquisition (M&A) and the lack of a theoretical framework that can explain the equality construction during PMI. M&A was found to be suffered from a high rate of failure that derived from a lack of understanding of the PMI dynamics that unfold across the process and the impact of the human factors. Becoming an equal employee within the merged company was founded as a critical success factor but there is a lack of understanding of how equality is constructed and unfolded during the PMI. Applying Grounded Theory (GT) principles, using an iterative process of data collection through semi-structured interviews and theoretical sampling, constant comparison, and through theoretical coding discover an emerging theory grounded in data within the research field. Theoretical categories emerged to explain the basic social process of equality construct and how it unfolds during a PMI. Scholarly, at the core of the discovered theory is that individuals developed their equality perception as an unfolding process through the PMI. Theoretical conceptualisations put forth the elements of influence, meaning and justice as the precursors of equality construction. Within these three theoretical categories, the results showed how these categories unfold through the stages of the PMI that enable equality to be developed. Based on the substantive theory and the collective data, informed actionable knowledge was developed that generates actionable plans to overcome the disintegrative dynamics of PMI. Practically, the emergent theory and literature were the basis for developing actionable knowledge for short and long-term PMI strategies. This thesis concludes with a discussion on the implications for practice, research and suggestions for future research. This research about the merger of equals, contributed to the construction of theory about the unfolding dynamics of a PMI process that shape equality creation through the integration of two merged companies.