Understanding the process of successful acquisition: An actor-network-theory perspective

Abstract

Mergers and acquisitions (M&A) is a phenomenon that is getting more and more attention in organizational studies lately. Big international companies are buying smaller companies in order to achieve competitive advantages. But despite this increased popularity, studies show that the majority of all mergers and acquisitions are failing. Many reasons have been suggested for this and the literature is not in consensus regarding the factors that are leading to the failure of M&As and consequently, what factors that are contributing to the success of mergers and acquisitions. Based on the need for more research within this field, as suggested by the literature, the aim of this paper is to study the unfolding of a successful acquisition process through the lens of actor-network-theory and the model of translation and to identify the factors contributing to the success of an acquisition. To fulfil the aim of this paper, a case study of an acquisition has been conducted at an international multidisciplinary consultancy firm acting in the field of architecture, design and engineering. The events that unfolded during the acquisition process have been analysed using the actor network theory (ANT) and the model of translation. The implications of this study are that the acquisition process is a process of translation where actors are enrolled and mobilized. The vital factors contributing to the success of the acquisition are identified as communication, cultural fit between the merging companies, the speed of the acquisition, the presence of an integration plan and the current legislation regarding employee rights in the acquirer’s country. By analysing the process of acquisition through the lens of ANT, this study contributes to the literature on actor-network theory by adding an understanding of successful acquisition process as a process of translation. By identifying the factors that were important for the successful outcome of the acquisition, this study also contributes to the literature on determinants for a successful acquisition process.