Employee experience in post cross-border acquisition : A case study of a knowledge-intensive business service company

Abstract

Employees are central to the process of M&A as they both affect and are affected by M&A activities. This study examines employee experience in post cross-border acquisition in the context of the knowledge-intensive business service sector. The research questions are “What are the key factors that influence employee experience in post cross-border acquisition?” and “How do employees of the acquired company experience the cross-border acquisition?“. Existing literature on cross-border M&As and factors affecting employee experience was utilized to build the theoretical framework. The study was conducted as a qualitative single case study. The data was collected through semi-structured interviews with respondents from the case company. The results from the interviews were analyzed in relation to the theoretical framework. Based on the analysis, the way employees experience the post-acquisition stage varies significantly. Three main factors that affect employee experience in post-acquisition were identified. The first one is integration speed. A gradual integration process may lead to feelings of uncertainty and impatience among employees, whereas a rapid process was not sought after for some employees. The second factor was knowledge sharing. It was concluded that implementing HR practices that facilitate knowledge transfer significantly eases the integration process and brings about positive employee experiences. Thirdly, top management support and communication are important in shaping employee experiences during the post-acquisition phase. Effective communication that is clear, transparent and frequent helps reduce uncertainty and build commitment. On the other hand, over-promising and lack of follow-through can lead to frustration and disengagement in employees.