Weakened Agents of Strategic Change: Negative Effects of M&A Processeson Integration Managers

Abstract

Traditional accounts of M&A emphasize employees as victims of unintended negative effects of integration, resulting in poor motivation and productivity. In response, managers are seen as responsible for conducting integration while at the same time considering the well-being of employees. However, little research attention has been given the ability of integration managers to do so if they, too, suffer from low motivation and productivity. This study therefore asks how managers are affected by acquisition processes. Taking a structured approach to analyzing in-depth data from a Nordic acquisition it is shown that middle managers experience several negative effects of M&A, however with some distinct features. Interpreted through the commonly applied theoretical lens, the negative effects on integration managers should reduce their ability to successfully lead integration, in turn contributing to explain the often poor performance of M&A.