Trust, leadership and conflict : the impact of HR practices during family firm M&As

Purpose: Effective leadership can be success-critical in mergers and acquisitions. The purpose of this study is to present what human resource (HR) practice can offer if such leadership is absent and puts the success of the merger or acquisition at risk. Design/methodology/approach: Drawing on a recent merger, this paper clarifies the interplay between trust, leadership and conflict. Findings: HR can take an active role in supporting top management during major organizational change by avoiding a leadership vacuum; effectively communicating promises by the new owner; and offering support in interfamilial conflicts during the integration phase. Originality/value: Supporting a smooth exit for the target owner, assisting the owning family in their communication activities and taking conflicts within the family seriously, all help to effectively merge two family firms.