Ittipat Chinangkulpiwat. Organizational Integration and Its Impact on Mergers and Acquisitions Performance in Thailand. Doctoral Degree(Industrial Business Administration). King Mongkut's Institute of Technology Ladkrabang. KMITL Lifelong Learning Center. : King Mongkut's Institute of Technology Ladkrabang, 2024.
Organizational Integration and Its Impact on Mergers and Acquisitions Performance in Thailand
Abstract:
Mergers and acquisitions (M&A) have been increasing and reached unprecedented levels, with global transactions amounting to $5.9 trillion across more than 63,000 deals, underscoring the growing significance of M&A in corporate strategy. Despite this, many M&A deals fail to meet expectations. Studies reveal that over 83% of M&As do not achieve their intended value creation, often due to challenges in organizational integration. This research addresses the critical issue that, while M&A serves as a vital strategic tool, its high failure rate highlights the need for a deeper understanding of effective organizational integration strategies. This research enhances our understanding of how organizational integration affects M&A performance and illustrates that key motives for mergers and acquisitions play significant mediating roles between organizational integration and M&A performance. This research employs a structural equation modelling approach within a quantitative research framework. Data were gathered through an online survey consisting of 203 participants who have experienced mergers and acquisitions in the past decade. The findings from this quantitative study illustrate the impact of organizational integration on M&A performance, highlighting the mediating roles of synergy, diversification, and competitive strategy. The research findings confirm that organizational integration significantly enhances M&A outcomes. SEM illustrates the relationship of the variable of organizational integration towards M&A performance with synergy, diversification, and competitive strategy as mediating roles. Additionally, the total influence analysis of organizational integration on M &A performance is quantified at 0.57. This value comprises indirect effects from three key mediating factors: synergy (0.34), diversification (0.12), and competitive strategy (0.09). The impact of organizational integration enhances M&A performance through the mediating such as synergy, diversification, and competitive strategy by streamlining operations, improving market reach, and enabling effective navigation of market challenges. Consequently, the study recommends that managers prioritize robust integration strategies, focusing on both task and human integration, to maximize value creation in M&A transactions. A limitation of this study is its reliance on self-reported data, which may introduce bias. Future research could address this concern by incorporating objective performance measures, such as financial performance metrics, to minimize potential biases stemming from respondents' subjective perrelationships to validate the existence of relationships more accurately
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King Mongkut's Institute of Technology Ladkrabang. KMITL Lifelong Learning Center