The meso-unit theory of post-merger integration

Abstract

This article introduces the meso-unit theory of post-merger integration. The theory offers that the number of constituent work-units involved in an organizational merger has a greater detrimental effect on the time-to-integration than does the total number of constituent personnel involved. Its establishment is based on the results of controlled experiments conducted in a virtual laboratory. The simulation utilizes agent-based modeling software that encapsulates organizational behavior models such as the knowledge-based view of the firm, social and communication network theory, and CONSTRUCT theory. The software is configured for a two-organization merger and implements classic behavior dynamics to simulate communicative behavior of information-seeking actors. As a result, detailed micro- and macro-level data on the integration progress is available for examination, analysis and interpretation. The results give rise to the development of the meso-unit theory, which directs integration managers’ attention toward a key aspect of the integration that is often overlooked.