talented management or other soft skills (such as speed of product development)
and retain them, or when conformance to the acquiring company rules and sys-
tems could be detrimental to the acquired company’s competitive advantage.
The key to success here is to protect the boundary of the new subsidiary
from unwarranted and disruptive intrusions from the parent, though this can
be hard to ensure. Even with the best of intentions, there can be a form of
creeping assimilation as the acquiring company encourages the acquired one
to begin to work in the same way and to develop systems and processes which
match those of the parent organization.
Because of operational pressures, most stand-alone acquisitions do not last.
While the acquired company may appear independent to the outside world,
some functions at least are merged with the rest of the organization. Or else
‘stand-alone’ is a temporary phenomenon, until other aspects of the strategy
are realized, such as further acquisitions. If the potential for strategic integra-
tion is not addressed, the two organizations can over time begin to work
94 International Human Resource ManagementLowLowHighDegree of change in acquiring companyAbsorption
Acquired company
conforms to acquirer—
Cultural assimilationTransformation
Both companies find
new ways of operating—
Cultural transformationBest of both
Additive from both
sides—
Cultural integrationPreservation
Acquired company
retains its
independence—
Cultural autonomyReverse merger
Unusual case of
acquired company
dictating terms—
Cultural assimilationHighDegree of
change in
acquired
companyStrategies for Post-Merger Outcomes (Marks, M.L. and Mirvis, P.H., 1998).
Copyright © 1998, Jossey-Bass. This material is used by permission of John
Wiley & Sons Inc.FIGURE 4.1