Corporate Acquisitions: The Merging of Habitual Domains*

Article type: Research Article

Authors: Datta, Deepak K. | Yu, Po L.

Affiliations: School of Business, University of Kansas, Lawrence, KS 66045, USA

Note: [*] This research has been partially supported by NSF Grant No. IST-841 8863 and a grant from United Telecommunications Inc. The authors wish to thank George Puia and V. Subramanium for their helpful comments on previous drafts of this paper.

Abstract: This paper illustrates how an understanding of the concepts and issues associated with organizational and individual habitual domains can significantly improve the analysis of acquisition alternatives. Specifically, we stress the importance of a more comprehensive analysis of acquisitions, one that goes beyond an examination of just financial and economic issues and recognizes the importance of the human side of acquisitions. Consideration of the human aspect is important not only in pre-acquisition analysis but also in how the acquisition is to be eventually implemented. This paper emphasizes issues related to the habitual domains of the two organizations, the fit therein, and the potential costs associated with their assimilation. Based on the same, we develop a framework which can be used for a more comprehensive and effective analysis of acquisition opportunities.

Keywords: Mergers and acquisitions, Habitual domains, Planning

DOI: 10.3233/HSM-1991-10106

Journal: Human Systems Management, vol. 10, no. 1, pp. 47-60, 1991