Understanding organizational adaptation mechanisms in mergers and acquisition: a case study from the banking sector


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Pekcan B., Küskü Akdoğan F.

Research Journal of Business and Management (RJBM), vol.8, no.3, pp.206-221, 2021 (Peer-Reviewed Journal)

Abstract

Purpose- Merger and Acquisitions bring together organizational change. Adapting to this change is essential to be successful. Organizations need to harmonize their structures, processes and human resources in order to successfully adapt to this change. The current study aims to explore the post-integration mechanisms carried out after a multinational acquisition in Turkish context. Methodology- This study is based on descriptive research design. Primary data were collected through interviews and observations made with the managers of the acquired organization. In addition, secondary data were collected by examining the notices and announcements, corporate presentations, changes in organizational structure over time and other internal resources of the acquired company. Findings- Following the acquisition, various integration mechanisms are applied to align the structure, processes and human resources of both companies. In some aspects it was found in-depth integration and alignment, whereas some areas remain less changed or even unchanged. Also, it was observed that the application of mechanisms aimed for organizational alignment may differ from the already mentioned methods in the Post-Merger Integration literature. Conclusion- Research results show that task integration mechanisms by themselves are not sufficient in the process of adaptation to postacquisition integration. Human and culture factors are at least as important as the first one on post-acquisition integration success. In the case examined, it is seen that various mechanisms were applied under both integration strategies within the acquired organization, and some additional mechanisms not mentioned directly in the literature.