Post-Acquisition Human Resource Management in Cross-Regional M&As

Abstract

M&As in todays world are constantly on the rise. With soaring rates of failuresin M&As, there has been a wealth of research conducted on their cause. Recent trends in research have shown shortcomings regarding human, or soft, factors, not hard factors such as accounting, revenues, profit ratios, etc., in integration which account for the failures of the M&As. However, although lots of research has been done, there is a lack of organization in this field with new variables being touted as important for the success of an M&A. This paper organizes the existing research into a clear, cohesive, and generic framework that is used to organize the existing variables, also to be used as a guidepost for future research to be categorized into. This is done through the adaptation of Porters Diamond and its extension, the Double Diamond. By adapting the four corners of the diamond to represent integration, speed, management, and culture in the stead of factor conditions, demand conditions, firm strategy, structure and rivalry, and related and supporting industries, respectively, the variables that have been broached on this topic has been categorized into cohesive, inter-related factors which helps to show the areas in which research is lacking thereby directs research into those factors lacking research. This paper also suggests the use of these frameworks and Moons ABCD Framework for a practical solution to creating a strategy for smooth and effective integration of firms that are merging through highlighting the important factors that need to be remembered.