Trust dynamics in acquisitions: A case survey

Drawing on the organizational trust literature and research on postmerger
integration, the authors develop a model that conceptually synthesizes the
antecedents and consequences of trust in acquired organizations. The model
proposes that the acquiring and target firms' relationship history, the interfirm distance, and the acquirer's integration approach will affect target firm
member trust in the acquiring firm's management. Target firm member trust,
in turn, may influence several sociocultural integration outcomes as well as
postacquisition performance. The results of a case survey suggest that certain
aspects of the relationship history and interfirm distance, such as the firms' collaboration history and preacquisition performance differences, are poor predictors of trust, whereas integration process variables, such as speed of
integration, communication quality, and acquirer multiculturalism are major factors infl uencing trust. The implications for postmerger integration research
and practice are discussed.