Inertia in post-acquisition information systems integration: A case study of a cross-border acquisition

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Volume Title

School of Business | Master's thesis

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Date

2024

Department

Tieto- ja palvelujohtamisen laitos

Major/Subject

Mcode

Degree programme

Information and Service Management (ISM)

Language

en

Pages

68 + 5

Series

Abstract

This thesis examines how inertial forces influence and slow down information systems integration following a corporate acquisition focusing especially on how social factors such as resistance to change and cultural differences, and technical factors such as technical debt create inertia. Literature on theories of sociotechnical change, organisational inertia, post-acquisition information systems integration, and organisational change is presented to give a thorough understanding of the information systems side of mergers and acquisitions. The study employs case study methodology using a constructivist approach and examines the acquisition of a Finnish company by a Baltic company. All employees of the Finnish company, as well as the COO of the Baltic company, are interviewed. The empirical data is analysed using an inductive approach to uncover sources of inertia. The analysis of the data presented various sources of inertial forces potentially influencing information systems integration. From the technical side influencing factors include lack of IT support, IT inflexibility and lack of connection between systems, lack of documentation and training, and manual data migration. Social factors found were cultural differences, communication issues, dependency on tacit knowledge, and lack of leadership. The study proposes a set of actions for managers navigating the complexities of mergers and acquisitions. According to the findings, potential strategies for mitigating technical inertia are sufficient IT support, addressing technical debt, and ensuring training and clear guidelines. Social inertia can be addressed through cultural integration, effective communication and support mechanisms, and leadership structures. Additionally, the study suggests strategies for achieving high job satisfaction through employing sociotechnical theory and discusses the importance of organisational learning and dynamic capabilities for exploiting previous acquisition experience.

Description

Thesis advisor

Penttinen, Esko

Keywords

M&A, information systems integration, technical inertia, social inertia, organisational inertia, sociotechnical change, organisational change

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Citation

Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-202408255588

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[gradu] Kauppakorkeakoulu / BIZ