D.B.A. Baker College (Michigan), 2012.
Specialization: Social Research, Organization Theory, Management.
274 pages; UMI #: AAT 3494887
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The problem addressed in this qualitative single case study was a gap in the literature exists about the impact mergers and acquisitions have on suppliers of acquired companies and whether the employees of suppliers also experience merger syndrome. Also, minimal research exists about the impact that the merger or acquisition has on the interorganizational network relationship and performance between the acquired company and its suppliers. Research questions covered what characteristics of merger syndrome are discernible within suppliers of an acquired company, how does merger syndrome influence the performance of the interorganizational network, and how do the supplier management strategies employed by the acquired company affect the impact of the merger or acquisition on the employees of the suppliers? The theoretical construct was based on the research of Dr. Marks' and Dr. Mirvis' conception merger syndrome. The construct also included extrapolations from various theories of conflict, interorganizational networks, interorganizational dependence, interorganizational dialectics, interorganizational network change, and supply chain management strategies. Results showed that all typical merger syndrome-related symptoms were discernible in the suppliers of the acquired companies. These symptoms ranged from the expected automatic responses, to heightened levels of self-interest, to crisis-management orientations, to significant needs for more communication. As a result of interorganizational network merger syndrome and a convergence of two fronts of merger syndrome (suppliers and acquired organizations), the performance of the interorganizational network was mostly negatively affected in price, quality, delivery, and responsiveness. As evidenced, immediate access to the suppliers and flexibility to make interorganizational network changes are not possible. Understanding the barriers encountered in the supplier integration process as well as the impact integration of an acquired company's interorganizational network has on performance is critical to sustainability and success. This case study has presented evidence confirming that interorganizational network merger syndrome refers to the automatic responses and dysfunction that occurs in the interorganizational network of acquired companies.