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Managerial biases during a merger process in a government-controlled organization

Author

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  • Anne-Sophie Thelisson

    (Sciences and Humanities Confluence Research Center-UCLY, ESDES)

  • Olivier Meier

    (Paris Est University)

Abstract

This paper explores which managerial biases that are present during the negotiation period of a merger influence post-merger integration. With a longitudinal case study, this paper explores which managerial bias constituencies influence the integration process. The paper presents a longitudinal case study of a merger of two listed French companies. The data were collected from participant observation, interviews, and archival documentation over two years. The case involves retrospective (premerger negotiation period) and real-time (merger period) data. Our study reveals three managerial biases during the negotiation period: (1) Anchoring bias with availability bias: a disappointing past experience for the acquiring firm; (2) Temporal bias: temporal pressure on the CEO and stakeholders; (3) Hubris bias and brakes: schizophrenia/ambiguity from the leaders of the acquired company. We also identified two factors reinforcing these biases during the integration process: (1) Social pressure of a major project: Greater Paris; (2) Expert’s role: failure to take into account the contributions of the other company. The study provides insight into organizational change in a merger context. The study contributes to the merger literature by highlighting managerial biases and reinforcing mechanisms during negotiation and integration periods.

Suggested Citation

  • Anne-Sophie Thelisson & Olivier Meier, 2022. "Managerial biases during a merger process in a government-controlled organization," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1315-1338, December.
    • Handle: RePEc:kap:jmgtgv:v:26:y:2022:i:4:d:10.1007_s10997-021-09586-6
    DOI: 10.1007/s10997-021-09586-6
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    References listed on IDEAS

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