Best practices for knowledge transfer in mergers and acquisitions integrations: A phenomenological study

Abstract

Approximately 50% of mergers and acquisitions (M&A) destroyed value for shareholders of the acquiring company and knowledge is one of the main assets for the enterprise software industry. However, little research exists on how knowledge transfer successfully happens during the complex and disruptive M&A process. This hermeneutic phenomenological study explored best practices for knowledge transfer in M&A integrations in the enterprise software industry through the lived experiences of 22 M&A and knowledge management specialists. Ten key themes and conclusions emerged from the research that built the foundation for four implications for companies and three implications for leaders. The identified best practices for successful knowledge transfer in M&A integrations were: (a) over-communicate, (b) identify and secure knowledge, (c) instill job security, (d) carefully select integration team members, (e) adjust systems and processes, and (f) influence the knowledge transfer culture. The implications from the research were that leadership matters, M&A integrations can be improved, and communication and decisions are important. To accomplish M&A success, leaders have to ensure sustainable profits, set the right M&A goals, establish accountability, and maintain a strong sales force by applying the best practices presented in this study.