Why do sustainable mergers fail to manage entrepreneurship?

Abstract

This paper proposes a conceptual model using four failed mergers (Federated -Fingerhut, KCPL and Western Resources, Daimler–Chrysler and Alcatel–Lucent) and distinguishes two types of dimensions: type of failure (tangible and intangible) and degree of failure (fixable and unfixable). Using case studies as a research strategy and focusing on the Alcatel–Lucent merger, as an example of an idiosyncratic type of “merger of equals”, the model identifies the entrepreneurial conflict variable as a missed step for obtaining a sustainable merger process over time.