Psychosocial factors influencing change management: An African cross-border acquisition case

Abstract

Orientation: Cross-border acquisitions are instrumental in international businesses’ expansions, even though 70% fail. This necessitates risk and change management as driving forces. The context of this case study is within a change management initiative implementation during a cross-border acquisition between a global organisation and its African subsidiary. Research purpose: The study explored the psychosocial factors that influence the successful implementation of a change management initiative. Also, recommendations are made towards mitigating psychosocial risks that should be incorporated as part of a well-thought-through change management initiative and process, in a multifaceted Africa context. Motivation for the study: To understand the psychosocial factors posing a risk and becoming impeding factors within a multifaceted African merger and during a cross-border change management initiative. Research approach/design and method: A qualitative approach and case study design, adopting a hermeneutic phenomenological paradigm, was applied. Data were collected through semi-structured interviews and analysed using Tesch’s content analysis. Main findings: Having an awareness of psychosocial factors influencing change initiatives, requires interconnectedness and co-construction, to enable successful implementation, while mitigating risk. The African context greatly values culture, relationship, trust, respect, and collaboration. Thus, risk cannot be managed without managing change and contrariwise. Practical/managerial implications: In multifaceted Africa, the importance of stakeholder inclusion and engagement are highlighted, and the importance of stakeholder and task integration towards mitigating risks and modifying psychosocial behaviour are emphasised. Contribution/value-add: Substantive evidence enables a better understanding of psychological risk factors impeding change within a multifaceted environment. Interconnectedness and co-construction enable effective risk mitigation and change implementation.