Strategies for maintaining entrepreneurial motivation in entrepreneurs post-acquisition A case study of a decentralized firm

Abstract

Mergers and acquisitions (M&As) are a common strategy for firms seeking growth and market expansion. While previous research has focused on the financial and operational aspects of M&As, there is a gap in understanding how entrepreneurial motivation is maintained post-acquisition. Entrepreneurial motivation plays a important role in maintaining engagement and local expertise in acquired firms. However, few studies have examined how entrepreneurs adapt to their new roles and remain engaged after their firms are integrated into a larger corporate structure. The master’s thesis investigates the motivation of entrepreneurs within two firms, that have acquired multiple firms in recent years. Using a qualitative case study approach, semi-structured interviews with entrepreneurs and key managers provides insights into how entrepreneurial motivation is influenced by the degree of autonomy, early integration, and leadership practices during and after the acquisition process. The study’s findings reveal that maintaining entrepreneurial motivation postacquisition is based on three key factors: (1) the importance of maintaining autonomy, (2) early integration, and (3) effective leadership that respects local expertise while providing strategic direction. Entrepreneurs showed high levels of motivation when they retained control over local operations and felt trusted by management. The study contributes to the understanding of how decentralized organizations can sustain entrepreneurial motivation, offering insights for managing acquisitions more effectively.