The purpose of this paper is to shed light on challenges faced in human resource (HR) integration in subsidiary mergers of western corporations in Poland. The paper seeks to…
Abstract
Purpose
The purpose of this paper is to shed light on challenges faced in human resource (HR) integration in subsidiary mergers of western corporations in Poland. The paper seeks to investigate the central themes in HR integration in terms of the role of the HR function and the implications for the local workforce.
Design/methodology/approach
A qualitative method research design was adopted with semi‐structured formal and informal interviews, participant observation, and secondary/primary data analysis.
Findings
Findings provide insights into the challenges of integrating the subsidiaries of western corporations based in transition economies and why problems might emerge from the collaboration between local and foreign managers. Specifically, the analysis suggests that a success of the HR integration might be particularly at stake in circumstances of a low HR power in a subsidiary and a low multiculturalism of the foreign investor.
Research limitations/implications
The main study limitation concerns the fact that investigations concerned perspectives of local managers. It would be interesting in future research to observe the HR processes as perceived by both local executives and foreign parent decision‐makers.
Practical implications
The paper's findings may help managers and change agents to understand the specific challenges to HR integration of subsidiary mergers.
Originality/value
The results shed light on HR integration in subsidiaries of corporations from western economies based in emerging or developing regions. Specifically, in circumstances of a low HR power in a subsidiary and a low multiculturalism of the foreign investor, officially proclaimed friendly mergers may turn to hostile takeovers and drastic changes risk implemention without a clear understanding of the local context. Then, HR integration risks having a dysfunctional impact on the workforce and consequently, failing to deliver expected synergies and, in the long‐term, cause M&As failure.
Details
Keywords
Anna A. Łupina‐Wegener, Susan C. Schneider and Rolf van Dick
Building on social identity theory, the purpose of this paper is to present a study on the socio‐cultural integration process in a merger of two European pharmaceutical…
Abstract
Purpose
Building on social identity theory, the purpose of this paper is to present a study on the socio‐cultural integration process in a merger of two European pharmaceutical subsidiaries in Mexico. The paper investigates antecedents of perceived threat to pre‐merger identities in an officially claimed “merger‐of‐equals”.
Design/methodology/approach
A mixed‐methods approach was adopted comprising semi‐structured interviews (with 37 interview partners) and standardized employee surveys with 890 respondents.
Findings
Findings indicate that identity of the new organization was largely shared among members of the different subgroups. Though the employees considered their pre‐merger identities to be at stake (as demonstrated through the interviews), this experienced threat was not very strongly expressed in the survey. In fact, the sub‐groups were able to maintain distinctiveness, acknowledge the value added of each group, and had access to resources.
Research limitations/implications
The main study limitation concerns the fact that this research was conducted using a cross‐sectional design. It would be interesting in future research to observe the processes as they unfold over time.
Practical implications
The paper's findings may help managers and change agents to understand that within merger partners, subgroups exist and different concerns in terms of their identity may emerge.
Originality/value
The results shed light on how shared identity in the new organization can successfully develop despite different perceptions of the integration process of members from the acquired and the acquiring groups. In contrast to past research findings on M&As, positive results were achieved despite contradictory perceptions of integration process of members of the acquired and the acquiring groups.