The role of senior management in the knowledge transfer process during an acquisition: an exploratory case study in the education sector

Abstract

Abstract: This study focuses on the role of senior management in the knowledge transfer process during an acquisition of a private, alternative faith-based school by a public provincial school board, both located in Canada. To keep the anonymity of these organizations in this study, the organizations were given pseudonyms. These were « Biblical School », for the private alternative faith-based school and « School Board », for the public provincial school board. The organizations came together in July of 2015, in a deal that was officially referred to as an « acquisition », with the School Board as the acquiring organization. However, the acquisition negotiations began several months earlier. In the agreement, the Biblical School would gain access to resources held by the School Board, while the School Board would take over the two campuses belonging to the Biblical School. Additionally, the School Board would be responsible for the provincial school program, whilst the Biblical School would be left with some responsibilities, including alternative faith-based education programs and some logistics components. Senior managers from both organizations were involved through all the stages of the acquisition, from the negotiations, to the transfer of knowledge during the transition. This thesis focuses on these roles by studying the perceptions of senior managers, middle managers, teachers and support staff, drawn from both organizations. In order to clarify the role of the senior managers in the knowledge transfer process during an acquisition, the literature review explores the concept of mergers and acquisitions, the knowledge transfer, the role of senior management and the proximity factors in the knowledge transfer process during an acquisition. Under mergers and acquisitions, the literature helps understand the concept and the importance of supporting organizations to transfer or consolidate their assets, including knowledge. In the following section, the literature reveals th e definition of knowledge transfer, how it can be achieved, the factors that affect it and its importance in mergers and acquisitions. Then, in the role of the senior management component, the literature identifies the role of senior managers in supporting an effective transition in a merger, or an acquisition. Finally, the factors of influence regarding the role of senior managers in the knowledge transfer process during an acquisition are revealed in the literature as geographical, cognitive and organizational proximity. Nonetheless, time is also mentioned in the literature as a major factor of influence. The aim of this qualitative and exploratory study is to understand the role of senior management in the knowledge transfer process during an acquisition. It is based on a case study carried out within the two institutions previously mentioned, where semi-structured interviews were conducted with a total of 29 participants. The results of the study help the researcher to identify the pillars around the role of senior management and in the process meet the three objectives of the study which are : a) to describe and understand the role of senior management in the knowledge transfer process during an acquisition, b) to highlight the best practices of senior management in order to improve the knowledge transfer process during an acquisition, and c) to identify the factors that influence the role of senior management in the knowledge transfer process during an acquisition. From the results emerged a model that illustrates the role of senior managers in the knowledge transfer process during an acquisition. The model includes the categories, strategies, best practices and factors of influence surrounding the role of senior management in the knowledge transfer process during an acquisition. First, the model presents the role played by senior managers in the knowledge transfer process during an acquisition, which is divided into three main categories; knowledge management, communication management, and transition management. These categories are viewed through the lenses of the pre-acquisition and post-acquisition phases. Each category is divided into different strategies. The strategies under the knowledge management category are identified as: 1) performing research on the acquired organization, 2) creating and implementing the knowledge transfer plan, and 3) providing resources for the knowledge transfer. These strategies fall under both pre and post-acquisition phases. Next, the strategies related to the communication management category, which also fall under both pre and post-acquisition phases, are primarily identified as: 1) setting up communication channels, 2) setting and communicating expectations clearly and transparently, and 3) being receptive to the employees’ ideas and concerns. In the last category, the strategies under transition management are underlined as 1) be ing physically present and organize meetings, 2) offering employees support during the transition, and 3) providing the necessary tools during the transition. These strategies fall only under the post-acquisition phase. Second, the model highlights the best practices of senior managers in the knowledge process during an acquisition. These best practices are divided into three main categories: forecasting, relationship building, and training. Each category of best practices is linked to a specific category related to the role of senior management. Forecasting is linked to the knowledge management category, relationship building to the communication management category and training to the transition management category. Under relationship building, the perceived best practices are creating and partaking in relationships between employees in both organizations, encouraging an open-door and teamwork culture and showing appreciation to employees. Under forecasting, creating a plan to support the transition, assigning someone on-site to manage the transition and learning from previous experiences are revealed as the perceived best practices. Lastly, under training, identification of employees’ levels of knowledge, the offer of training programs to facilitate the knowledge transfer and providing expert speakers, trainers and mentors, are revealed as the perceived best practices. The model also showcases four factors of influence around the role of senior management in the knowledge transfer process during an acquisition. These factors are: geographical proximity, cognitive proximity, organizational proximity and time. Under geographical proximity, distance in relation to physical presence and distance in relation to communication flow are identified as the two characteristics that affect the role of senior managers. Also, in terms of cognitive proximity, shared knowledge vs knowledge gaps and employees’ professional experiences, are revealed as the main cognitive proximity characteristics that should be taken into consideration when looking at the role of senior managers in the knowledge transfer process during an acquisition. Additionally, similarities or dissimilarities of the organizational cultures and the similarities or dissimilarities of the organizational structures are identified as the organizational proximity characteristics. Lastly, the time factor, including time adequacy and transition timeline, is identified as another factor that affects the role of senior managers in the knowledge transfer process during an acquisition. In conclusion, the theoretical contributions of this study are to improve the understanding of the relationship between the knowledge transfer process and mergers and acquisitions, to enhance the understanding of the role of senior managers in the knowledge transfer process during an acquisition, to improve the understanding of the theoretical bridges between the role of senior managers in the knowledge transfer process during an acquisition and proximity factors and finally, to contribute to the understanding of the time factor around the role of senior management in the knowledge transfer process during an acquisition. The study also presents practical contributions, including useful ideas and actions around the role of senior managers, the best practices and the factors of influence in the knowledge transfer process during an acquisition.