Contradiction and Sensemaking in Acquisition Integration

Abstract

The authors draw on research on acquisitions and on newcomer adjustment to analyze acquired managers’ sensemaking experiences. They pursue three interrelated objectives: how acquired managers, as newcomers, make sense of role changes; how these managers’ frames contrast with new frames encountered at the acquirer; how relationships with acquiring managers influence adjustment to new roles and frames. The authors report on a study of three acquisitions of small firms by a large, bureaucratic, serial acquirer. Findings showed contraction of the managerial role—and the resulting reconfigured role identity—created tensions emanating from managing familiar situations under new frames. Relationships with acquiring managers—a potential source of informational, material, political, and social resources—played a role in mitigating or amplifying the challenges experienced. Comparison of acquired and acquiring managers’ frames showed that absorption of small firms by large, serial acquirers creates in organizations heterogeneous sensemaking spaces characterized by contradiction.