Exploring human resources management in merger and acquisition: a case study of a foreign multinational company in China

Abstract

Few studies have systematically evaluated how the key dimensions of human resource management can facilitate successful mergers and acquisitions (M&As) in emerging economies. This research addresses this significant gap by exploring the role of training, line management and culture in the process of M&A in China. Drawing on the resourcebased view (RBV) of the firm perspective, the study explores the extent to which these HRM dimensions were utilised and deployed as resources that can contribute to the organisation’s strategic goals and objectives such as M&As.

This qualitative research adopts a case study approach and analyses documentary and interview evidence from a German multinational company, PumpCo based in China where the company experienced M&A in the past few years. The research findings suggest that the company’s HRM plays a significant role in effective M&A. As the dynamic and complementary resources of the organisation, training, line managers and culture helped the achievement of the company’s strategic goals for M&A, although some of the impacts, such as that of the culture, are more complicated than expected. The study shows that, if properly managed, training, line managers and culture can be the sources of competitive advantage for the case study company although future research is needed. Research contribution, implications and limitations are discussed.