Running head : THE ROLE OF IMPLEMENTED AND DESIRED MERGER PATTERN

When what we get is not what we want-The role of implemented versus desired merger patterns in support for mergers Council (RES 062-23-0135). We thank Jessica Salvatore and Joanne Smith for comments on an earlier version of this manuscript. Abstract Integrating an intergroup perspective on mergers with discrepancy theories, we argue that merger partners aim for merger patterns that benefit their group's standing best. Importantly, we hypothesize and show that the discrepancy between what merger partners want and what they get affects outcomes that are essential to merger success. Specifically, we demonstrate that perceived fit between the implemented and the desired merger pattern predicts support for the merger. We further show that this effect is mediated by perceived fairness (Study 1) and emotional reactions to the merger (Study 2). Our findings generalized across a field study that investigated a real merger between two institutions of higher education (Study 1) and an experiment (Study 2). emotions ! 3! When what we get is not what we want-The role of implemented versus desired merger patterns in support for mergers One of the most spectacular mergers in the last years was the one between Daimler-Benz and Chrysler in 1998. However, it also became one of the most spectacular failures when Chrysler was eventually sold in 2007, after massive losses in stock value and job cuts. One of the possible reasons why the merger failed was that cultural incongruence had been eroding the anticipated synergy effects. Although initially advocated as a 'merger of equals', it soon became clear that perspectives on how the merger should work diverged between the Chrylser and Daimler management teams. Nine years after the 'marriage made heaven', the new CEO Dieter Zetsche announced the divorce and sale of Chrylser. Although the reasons leading to the failure are clearly multi-causal, we argue that the divergent opinions about the way the merger should have been integrated (desired integration) and how it actually was integrated (implemented integration) were important factors. The perceived discrepancy between desired merger pattern (e.g., merger of equals 1) and implemented merger pattern (e.g., an acquisition) and how this discrepancy affects merger support is the focus of this paper. We propose that it is this experienced fit between desired merger pattern and implemented merger pattern that affects the merger's success in terms of organizational support for the merger rather than the (implemented) merger pattern per se that determines the strength …