Participative management and institutional context of mergers and acquisitions (M&As)
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Abstract
From a sociological point of view, mergers and acquisitions of companies are specific types of integration between social systems. The unions of countries are an analogue of these processes at the macrosocial level. There are a number of important similarities between these seemingly different unifying processes. Like countries’ unions, associations of companies can be voluntary or involuntary (friendly or unfriendly). Unification may not threaten the interests of the lower levels of the social system, but may cause fear and opposition from the elites. Finally, the specificity, ease and effectiveness of associations depend on the institutional context in which they take place.The most important institutional difference between associations of countries and associations of organizations is the prohibition on the violent seizure of states (in accordance with the principle of inviolability of borders) when invoking and even approving hostile takeovers in the market economy.Participation management as an implementation of the general trend towards democratization of organizations in the post-industrial era is also one of the elements of the institutional context of mergers and acquisitions. Its three components — capital, sharing, profit sharing and participation in decision making — transform the unifying processes in a specific way. In general, it becomes easier to carry out mergers and acquisitions, since in the conditions of participation management and self-government of independent groups (teams); the formation of a new social system is not a clash of the previously existed hierarchies of power, but the addition of new participants in the intra-organizational market.