Finding that right balance. A case of two globally merging MNCs’ subsidiaries and their local integration process.
Mergers and acquisitions (M&As) are popular expansion strategies for multinational corporations (MNCs), and, in recent years, cross-border mergers have become more frequent. The post-merger integration process determines the success of M&As between MNCs, and is viewed as a collection of interrelated integration processes across geographical settings. Most often, mapping the integration process is done through an HQ-perspective, thus examining the integration process from a local perspective adds another angle of comprehension. Through a single case study, this thesis highlights a subsidiary integration process and its influencing factors, from a local perspective, in an HQ-decided M&A. Theoretical indications on integration processes in M&As guided the collection of data to determine the pre-, during-, and post-merger situation, and by applying an abductive research approach the theoretical framework was revised during the data collecting process. The results show how the subsidiary integration process is affected by the administrative MNC heritages carried into the merging process, and followed difficulties aligning strategies and cultures of the firms. Also, the applicability of communication and the quality of socialising events have an impact, along with local institutional and relational contexts. There is a need of balancing factors in the complexity of a mandated parental merging decision on subsidiary level. The findings may be applied by managers in MNCs, and guide future researchers within integration from a subsidiary perspective.
MSc in International Business and Trade
Merger and Acquisitions
Master Degree Project