This study demonstrates that shared mental models – common psychological representations of tasks and teams – between acquirer and target significantly influence post-acquisition innovation outcomes. Task mental models positively affect exploitation activities by facilitating process refinement and synergy extraction, while team mental models benefit both exploration and exploitation through enhanced trust and collaboration. However, the benefits diminish substantially as relative target size increases: larger targets trigger in-group/out-group biases and institutional constraints that neutralize the positive effects of shared understanding, particularly for exploration activities.
Triggering Innovation Through Mergers and Acquisitions: The Role of Shared Mental Models
Share publication
Explore how the shared understanding of “who knows what” impact acquisition success.
MADiscover was founded on a research-backed insight: traditional M&A screening processes systematically direct attention away from strategic fit toward what‘s immediately measurable, familiar, and available.
We built MADiscover to address these patterns. Our platform combines comprehensive data coverage with AI-powered strategic assessment, enabling teams to identify and evaluate hundreds of targets against individualized criteria while maintaining strategic focus throughout the process.