Improving Acquisition Outcomes with Contextual Ambidexterity

• Author: Olimpia Meglio,Annette Risberg,David R. King
• DOI: http://doi.org/10.1002/hrm.21721
• Date: 01 December 2015
• Published date: 01 December 2015

Human Resource Management, December 2015, Vol. 54, No. S1. Pp. S29–S43

© 2015 Wiley Periodicals, Inc.

Published online in Wiley Online Library (wileyonlinelibrary.com).

DOI:10.1002/hrm.21721

Correspondence to: Olimpia Meglio, Associate Professor of Management, University of Sannio,

Department of Law, Economics, Management, and Quantitative Methods, Via delle Puglie, 82, 82100 Benevento, Italy,

Phone: +39 0824305710, Fax: +39 0824305777, E-mail: meglio@unisannio.it

have been considered by academics and prac-

titioners as a means to pursue exploration and

exploitation (Phene, Tallman, & Almeida, 2012),

and they may also help companies to find a

balance between exploitation and exploration

(Vermeulen & Barkema, 2001). This need for a

balance between exploration and exploitation

is the focus of research on organizational ambi-

dexterity (e.g., O’Reilly & Tushman, 2011). In

this article, we build on contextual ambidexterity

to examine task and human integration during

acquisitions. We hold that the integration of

previously separate companies creates tensions

between economic and organizational identity

goals that could be addressed through contextual

ambidexterity. In developing this perspective,

Mergers and acquisitions (M&As;

henceforth, acquisitions) continue

to intrigue scholars. In their search

to understand how acquisitions per-

form, numerous empirical studies

have investigated an array of variables to explain

how the acquisition process unfolds and ulti-

mately affects acquisition outcomes. Despite these

efforts, research has shown inconclusive results

for common variables and thus there remains a

need for a better understanding of this process

(Haleblian, Devers, McNamara, & Davison, 2009;

King, Dalton, Daily, & Covin, 2004). We focus on

the integration process and attempt to advance

the understanding of the process by drawing on

contextual ambidexterity literature. Acquisitions

IMPROVING ACQUISITION

OUTCOMES WITH CONTEXTUAL

AMBIDEXTERITY

OLIMPIA MEGLIO, DAVID R. KING,

AND ANNETTE RISBERG

The results of research on mergers and acquisitions often point to a need to

improve acquisition outcomes and lessen the organizational turmoil that can

often follow integration efforts. We assert that viewing acquisition integration

through the lens of contextual ambidexterity may improve acquisition out-

comes in two ways: by providing an integrated solution to the economic and

social tensions in acquisitions, and by enabling managers to effectively con-

front the competing needs of task and human integration. We also posit that by

building on contextual ambidexterity, we can extend the possibilities for both

research and practice regarding task and human integration in acquisitions.

We also emphasize the role of an integration manager and integration mecha-

nisms in enabling contextual ambidexterity for successful acquisition integra-

tion. Finally, we identify implications for research and practice. © 2015 Wiley

Periodicals, Inc.

Keywords: acquisitions, acquisition integration, contextual ambidexterity,

integration manager, integration mechanisms, task and human integration