How do institutional logics evolve over the merger process? A case in the public–private urban planning sector

• DOI: http://doi.org/10.1002/jsc.2180
• Author: Anne Sophie Thelisson,Audrey Missonier,Mickaël Géraudel
• Date: 01 January 2018
• Published date: 01 January 2018

RESEARCH ARTICLE

DOI: 10.1002/jsc.2180

Strategic Change. 2018;27(1):53–67. wileyonlinelibrary.com/journal/jsc © 2018 John Wiley & Sons, Ltd. 53

Abstract

Facilitang the postmerger integraon process between organizaons requires that they com-

bine opposite instuonal logics through the creaon of a new authority, identy, and legima-

cy. We underline that the implementaon of strategic change during the merger process was fos-

tered by the ability of the actors to combine instuonal logics through three concrete pracces:

redening the authority, identy, and legimacy of the new organizaon. Managerial recom-

mendaons from the instuonal logics perspecve are provided to facilitate the postmerger

integraon process.

1 

|

 INTRODUCTION

In 2015, an all‐me record for mergers and acquisions (M&As) was

set, with nearly $5 trillion in deals. The failure rate of M&As neverthe-

less remains high (Bach & Whitehill, 2008; Hussey, 1999) and scholars

connue to look for explanaons (Schweizer, 2005). One explana-

on that stands out is the incompabilies between organizaons.

Recently, researchers have called for new approaches to understand-

ing M&As (Stahl et al., 2013)—and more generally, strategic change

(Hussey, 1997)—and have urged greater aenon to process dynam-

ics (Meglio & Risberg, 2010). Examining the merger process from

the instuonal logics perspecve in a process‐oriented study may

therefore oer an opportunity to more fully capture the complexity of

mergers. The concept of instuonal logics was introduced by Fried-

land and Alford to explain how actors and organizaons are shaped by

“a set of material pracces and symbolic construcons” (1991, p. 248).

Thornton and Ocasio (1999) described instuonal logics as providing

“the formal and informal rules of acon, interacon, and interpretaon

that guide and constrain decision makers in accomplishing the orga-

nizaon’s tasks and in obtaining social status, credits, penales, and

rewards in the process” (1999, p. 804). Scholars have shown that orga-

nizaonal elds are organized by a dominant instuonal logic, even

though several instuonal logics may coexist (Balana & Dorado,

2010; Thornton, Jones, & Kury, 2005; Thornton & Ocasio, 1999). The

concept of instuonal logics thus has oered a new perspecve for

understanding the incompabilies between organizaons, although

scholars have paid lile aenon to how this concept plays out in the

M&A process (Reay & Hinings, 2009). Yet, M&As provide a good set-

ng for idenfying rival logics and studying how they evolve over me

because of the oen striking dierences in the organizaonal con-

texts (Randall & Procter, 2013). The concept is especially relevant for

private‐public M&A as these organizaons are shaped by quite dif-

ferent logics. Moreover, few studies have focused on the evoluon of

logics over me, and we parcularly know lile about how these logics

evolve over the M&A process and inuence strategic change imple-

mentaon. However, these issues are crucial because the success of

an M&A is dependent on the implementaon of strategic change dur-

ing the postmerger integraon (PMI) (Harwood & Chapman, 2009).

We therefore address a key queson in M&A research: How do

rivalries between instuonal logics evolve over the merger process? To

answer this queson, we conducted a longitudinal case study of a

merger between two French listed companies in the urban planning

sector. As noted, the M&A context is suited to observing rivalries

between instuonal logics, and our case study is parcularly well‐

adapted as it focuses on a private and public M&A. We mobilized

the ideal types proposed by Thornton, Ocasio, and Lounsbury (2012)

to idenfy the instuonal logics at play and show how these log-

ics evolved over M&A process. We underline that the strategic change

implemented during the M&A process was fostered by the ability of

the actors to combine instuonal logics through concrete pracces:

these actors worked to redene the authority, identy, and legimacy

of the new organizaon. This study thus contributes to the rening of

How do instuonal logics evolve over the merger process?

A case in the public–private urban planning sector*

Anne Sophie Thelisson1 | Mickaël Géraudel2 | Audrey Missonier1

1 Montpellier Business School, France

2 University of Luxembourg, Luxembourg

City, Luxembourg

Correspondence

Anne Sophie Thelisson, Montpellier Business

School‐CRET‐LOG EA 881, 425, Avenue

Gaston Berger, 13625 Aix‐en‐Provence,

France.

Email: anne‐sophie.thelisson@etu.univ‐

amu.fr

* JEL classicaon codes: M10, M20.