Mergers and Acquisitions (M&A) represent 2.5 to 5 trillion dollars in investments annually, yet research tells us that they consistently fail to meet expectations, with reported failure rates estimated as high as 90%. In this paper, we argue that this underperformance is often attributed to a phenomenon known as the “merger syndrome,” wherein individuals experience heightened emotional and behavioral challenges as a result of abrupt organizational changes and prolonged uncertainty. Despite its significance, there appears to be limited understanding of the mechanisms underlying these within-person changes during M&A processes and how they influence performance. To address this issue from a managerial and organizational cognition (MOC) perspective, we explore how self-regulation, psychological capital (PsyCap), and emotional memories interact to shape individual behavior and performance during organizational change. More specifically, we propose that the increased affective-cognitive load associated with M&A events depletes self-regulatory resources (SRR), leading to performance declines. Moderators such as shifting goals and PsyCap—comprising hope, self-efficacy, optimism, and resilience—impact SRR depletion and allocation. Additionally, autobiographical emotional memories (AEMs) of past experiences during the integration process influence individuals’ PsyCap and goals, affecting self-regulation dynamics. In our paper, we present a process model linking these elements, supported by some initial empirical evidence, and propose interventions for managers to influence AEMs positively, mitigate resource depletion, and enhance PsyCap. We argue that by addressing these within-person processes, organizations can improve employee performance and increase the likelihood of successful integration in M&A.
