Understanding the Human Side of Merger and Acquisition

Abstract

In this article, the authors identify six theories (anxiety theory, social identity theory, acculturation theory, role conflict theory, job characteristics theory, and organizational justice theory) to explain problems in managing the merger and acquisition (M&A) organizational change process. These theories have implicitly or explicitly formed the basis for the past M&A literature. The authors integrate these theories into one conceptual framework that clearly delineates unique sources of problems that can emerge in different stages of M&A integration, their psychological and behavioral effects on employees, and prescriptions to address the problems. The framework can be used as a guide for M&A integration leaders to systematically plan interventions to smooth the human integration process. It also provides a foundation for future theoretical and empirical M&A integration research.